smdc

Kaso ni Mayor Aldrin L.San Pedro et al, ng Muntinlupa,City sa Office of the Ombudsman

Filed under: Iskandal at Korapsiyon |


NAnanwagan ang mga residente ng Muntinlupa,City sa Office of the Ombudsman kung ano na ang nangyari sa mga isinampa nilang kaso laban sa kasalukuyan nilang Mayor nasi Aldrin L.San Pedro dahil ang tagal na daw nito ay wala pang kasiyon o desisyon ang nasabing tanggapan.

Naniniwala po ang TIRADA MEDIA GROUP na di mababahiran ng korupsiyon ang tanggapan ng Ombudsman sa pamumuno nitong si dating Associate Justice Conchita Carpio Morales ngayon kung hindi maaksiyunan agad ito maari isipin ng mga nagrereklamo ay nasuhulan ang may hawak ng kaso..
Note: Docketed as OMB-C-C-12-0200-E for criminal case
Docketed as OMB-C-A-12-0206-E for administrative case

REPUBLIC OF THE PHILIPPINES
QUEZON CITY

COMPLAINT-AFFIDAVIT

I, ABEL L. SUMABAT, of legal age, with residence and postal address at B4 L13 Isaiah St., San Marino Square Paliparan, Dasmarinas Cavite, after being sworn to in accordance with law and say;

1. I am charging with violations of Section 7, 13.3, 17.1, 18, 20.1,21.1, 21.2, 22.1, 25.1, 29, 30, 34, 65.1 c, 65.2 c and d, 65.3 d, of R.A. No. 9184 otherwise known as Government Procurement Reform Act; Section 3(a)(e)(g) of R.A. No. 3019 aka Anti-Graft and Corrupt Practices Act; the pertinent provisions of R.A. No. 7160 aka The Local Government Code of 1991; and Art. 217 (Malversation of Public Funds) of Revised Penal Code the following officials of the City of Muntinglupa, namely:

• Mayor ALDRIN L. SAN PEDRO
Address: City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

• Engr. VICENTE NAVARRO, City Engineer/BAC member
Address: City Government of Muntinlupa, National Road, Putatan, Muntinlupa City

• Mr. AVELINO ORELLANA, City Budget Officer/BAC member
Address: City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

• Mr. EDWIN T. SUITADO, OIC-City Accountant/TWG member, Ms. ELVIRA TULAY, Assistant to City Accountant/member BAC Secretariat, Mr. ROMEO PUCYUTAN, OIC-City Treasurer, all of whom can be served with the processes of this Honorable Office at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

• BAC members, TWG members, BAC Secretariat members namely:

Engr. ROBERTO M. BUNYI, BAC Chairman ;
Atty. MICHAEL RACELIS, BAC Vice-Chairman;
Mr. PETER SALONGA, BAC Member
Mr. RODOLFO OLIQUINO, BAC Member
Ms. SONIA LAURETA, BAC Member/Head, Procurement Office;
Engr. EDUARDO BAUTISTA, TWG Member;
Engr. GLENN SANTOS, TWG Member;
Arch. RODERICK ESPINA, TWG Chairman;
Ms. MARISSA GUERRERO, BAC Secretariat member

All of whom can be served with the processes of this Honorable Office at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

• Mr. OSCAR MARTINEZ, owner of AM-FM Builders
Address: 808 Cupang, Muntinlupa City

• Engr. ARTURO MELENDREZ, President, AP Melendrez Construction Inc, Address: B6 Gruenville I Subd., Bruger St., Putatan, Muntinlupa City;

• Engr. MARIO DE LEON, President, MDL Resort Constructors Inc.
• Address: Amarillo cor. Blanco St. Tierra Hermosa II, B.F. Homes, Las Pinas City;

• Vice-Mayor ARTEMIO SIMUNDAC, Coun. ALLAN REY A. CAMILON, Coun. MA. LUISA BABARAN-ECHAVEZ, Coun. MARGARITA AMYTHST PATDU-LABIOS, Coun. MELCHOR TEVES, Coun. ATTY. ICASIANO M. DELA REA, Coun. FRANCIS IAN T. BAGATSING, Coun. MARITA DEANG-CALALANG, Coun. LUVI CONSTANTINO, Coun. ENGR. MAMERTO SEVILLA JR., Coun. VERGEL ULANDAY, Coun. ROBERT ABAS, Coun. ATTY. REY BULAY all of whom can be served with the processes of this Honorable Office at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

2. On 20 and 23 February 2012, in my capacity as a permanent employee of the City Government of Muntinglupa occupying the concurrent positions as Internal Auditor IV and the Head of the Bids and Awards Committee Secretariat (BAC), I requested for a fact finding investigation on the following irregularities, to wit:
“In October 17, 2008, another rigged bidding was conducted, of course, upon the instruction of the City Mayor, The contract for the Construction of Four (4) Storey School Building at Pamantasan ng Lungsod ng Muntinlupa (Phase 2) amounting to P55M. The project was a completion of phase 1 which finished the 1st and 2nd floor of the building. Phase 2 was for the 3rd and 4th floor. The contract was awarded to AM-FM Builders, a contractor close the family of the City Mayor since the contractor is the father in law of the Mayor’s sister. The president of the University Dr. Fe Martinez is the wife of the owner of AM-FM Builders Mr. Oscar Martinez. Since the contractor is a favored contractor a rigged bidding was conducted. The bidding processes were all done in papers. In order to circumvent the purpose of public bidding, the project was not published in a newspaper of nationwide circulation, nor posted in the Philgeps as required under RA 9184, there was no invitation from the COA and observers. The glaring evidence that the contract was rigged was the observation of the COA that the bidders bond of all participating bidders were all taken from same company who issued bidders bond with a consecutive policy numbers for all participating bidders. Moreover, the bidding was on October 17, 2008, yet the technical proposal of the winning and losing bidders including affidavits were all dated October 28, 2008. The other dummy used did not even bother to sign the documents submitted. The contractor is not technically qualified to undertake the project due the limitations under its PCAB license. Sometime in April 2011, another rigged bidding was conducted to accommodate the request of additional works by AM-FM Builders for the same project amounting to P14M. This project is also part of the Notice of Suspension issued by COA and is subject in an ongoing investigation by the Ombudsman under CPL-09-0907 dated May 4, 2011.” (Annex A)

3. As the Head of the Bids and Awards Committee Secretariat of the City Government of Muntinlupa, my functions and responsibilities are as enumerated in Section 14.1 of RA 9184 are as follows:
a) Provide administrative support to the BAC;
b) Organize and make all necessary arrangements for BAC meetings and conferences;
c) Prepare minutes of meetings and resolutions of the BAC;
d) Take custody of procurement documents and other records;
e) Manage the sale and distribution of Bidding Documents to interested bidders;
f) Advertise and/or post bidding opportunities, including Bidding Documents, and notices of awards;
g) Assist in managing the procurement processes;
h) Monitor procurement activities and milestones for proper reporting to relevant agencies when required;
i) Consolidate PPMPs from various units of the procuring entity to make them available for review as indicated in Section 7 of this IRR; and
j) Act as the central channel of communications for the BAC with end users, PMOs, other units of the line agency, other government agencies, providers of goods, infrastructure projects, and consulting services, observers, and the general public.

4. Sometime in the last week of January 2009, together with Engr. Vicente Navarro, City Engineer, I was instructed by Mayor Aldrin L. San Pedro to prepare the ante dated bidding documents for the construction of Phase II of Construction of Four Storey School Building at Pamantasan ng Lungsod ng Muntinlupa (PLMUN), NBP Reservation, Muntinlupa City, which was already awarded to AM-FM Builders, a company owned by Mr. Oscar Martinez, the husband of the President of PLMUN Dr. Fe Martinez and the father in law of Mrs. Jasmine San Pedro Martinez sister of Mayor Aldrin San Pedro. This order came after Mr. Martinez requested for the payment of the said project which already started as early as the third quarter of 2008. This project is the continuation of Phase I which was awarded sometime in March of 2008 to AP Melendrez Construction, Inc., a company owned by Engr. Arturo Melendrez. AP Melendrez Construction was the company used by Mr. Oscar Martinez as dummy for the Phase I because at that time AM-FM Builders was not technically and legally qualified to undertake the Phase I project due to the limitation of its PCAB License. The Phase I of the said project was also attended with irregularities because the bidding of this project was only done in papers. There was no publication in a newspaper of nationwide circulation, posting at PHILGEPS, City’s website, and at the conspicuous places in the vicinity of the City Government of Muntinlupa in violation of Section 21 of the IRR-A of RA 9184. There was also no letter of invitation to COA and to observers in violation of Section 13.1 or the IRR-A of RA 9184.

5. The original plan of Mayor Aldrin San Pedro was to use Section 53 (d) of RA 9184 and award the same to AP Melendrez Construction to dispense with the public bidding. Under Section 53 (d) of RA 9184 the law provide “Where the subject contract is adjacent or contiguous to an on-going infrastructure project: Provided, however, That (i) the original contract is the result of a Competitive Bidding; (ii) the subject contract to be negotiated has similar or related scopes of work; (iii) it is within the contracting capacity of the contractor; (iv) the contractor uses the same prices or lower unit prices as in the original contract less mobilization cost; (v) the amount involved does not exceed the amount of the ongoing project; and (vi) the contractor has no negative slippage: Provided, further, That negotiations for the procurement are commenced before the expiry of the original contract.” However, this plan did not pursue because Engr. Arturo Melendrez, refused the offer due his problem with the BIR. Mr. Melendrez confided to me that Mr. Martinez was reneged in his promise to remit to him the payment due to BIR.

6. So as instructed by Mayor Aldrin San Pedro, I prepared the ante-dated bidding documents of Phase II and made it appear that the bidding took place on October 17, 2008 and made to appear all supporting documents ante dated. First the ante dated Obligation Request No. 100-0809-12243 amounting to P55,420,528.63 was issued and made to appear dated September 16, 2008 (Annex A-1). Then the schedule of paper bidding was made to appear dated October 17, 2008 at 2:00pm as reflected in the Invitation to Apply for Eligibility and to Bid (IAEB) (Annex A-2), however, since this was an ante dated document, advertisement of IAEB as required in Section 21 of RA 9184 was not followed. Since the bidding was only done in papers there were important requirements under RA 9184 which cannot be ante dated like the posting to PHILGEPS and the official receipts of payment of bidding documents. This project was also not published in a newspaper of nationwide circulation, there was no posting at PHILGEPS, there was no posting at City’s website, and there was no posting at the conspicuous places in the vicinity of the City Government of Muntinlupa in violation of Section 21 of the IRR-A of RA 9184. There was also no letter of invitation to COA and to observers in violation of Section 13.1 or the IRR-A of RA 9184. No payment was made by the bidders for the sale of bidding documents despite the huge amount of contract because official receipts at the City Treasurer’s Office are pre-numbered and therefore cannot be ante dated.

7. In the Abstract of Bids as Read which made to appear dated October 17, 2008 (Annex B), under the column Bidder 1 (AM-FM Builders), Bidder 2 (AP Melendrez Construction, Inc., Bidder 3 MDL Resort Constructors Inc., it is highly noticeable that the difference of bid amount among the bidders is only between two (2) to three (3) thousand pesos, AM-FM P55,415,237.51, AP Melendrez Constructors Inc., P55,417,257.50 and MDL Resort Const. Inc., P55,420,694.57 very highly unusual for a huge project costing Php55,000,000.00 pesos. This observation would only show that the there was no real bidding conducted and indicative of violations of pertinent provisions of RA 9184 particularly Section 65., 65.2(1)(4) , 65.3(1)(2)(3) of the IRRA-A. Also worth mentioning is the difference between the Approved Budget for the Contract (ABC) and the bids of the bidders. The only difference between the ABC of Php55,420,528.63 and the winning bid of AM-FM of Php55,415,237.51 is only Five thousand two hundred ninety one and 12/100 pesos (Php5,291.12) or a variance/dive of less than 1% of ABC. Meaning the City only got a discount/savings of less than 1% for the project costing Php55,000,000.00. This could not happen if the public bidding was open to all interested bidders registered under PHILGEPS.

8. In the BAC Resolution Declaring LCRB and Recommending Approval which made to appear dated October 24, 2008 (Annex C) which was signed by BAC Members and Mayor Aldrin San Pedro on the same date, showed that from the date of the paper bidding on October 17, 2008, it only took the BAC three (3) days to complete the process of bid evaluation and post-qualification. Granting arguendo that the BAC followed all the procedures in the conduct of bid evaluation and post-qualification prior to award as provided for in Section 32 and 34 of the IRR-A of RA 9184, why did the technical and financial proposals of the bidders showed inconsistencies violative of RA 9184. Section 30.1 of the IRR-A on preliminary evaluation of bid provides “The BAC shall open the first bid envelopes (Technical Proposals) of eligible bidders in public to determine each bidder’s compliance with the documents required to be submitted for the first component of the bid, as prescribed in this IRR-A. For this purpose, the BAC shall check the submitted documents of each bidder against a checklist of required documents to ascertain if they are all present in the first bid envelope, using a non-discretionary “pass/fail” criteria, as stated in the Invitation to Apply for Eligibility and to Bid and the Instructions to Bidders. If a bidder submits the required document, it shall be rated “passed” for that particular requirement. In this regard, failure to submit a requirement, or an incomplete or patently insufficient submission, shall be considered “failed” for the particular requirement concerned. In case one or more of the above required documents in the first envelope of a particular bid is missing, incomplete, or patently insufficient, the BAC shall rate the bid concerned as “failed” and immediately return to the bidder concerned its second bid envelope unopened. Otherwise, the BAC shall rate the said first bid envelope as “passed.” The technical proposal submitted by MDL Resort Constructors, Inc., (Annex D) showed that it was not even signed by the bidder and therefore should have been returned to bidder together with its financial proposal unopened. Meaning the financial bid of MDL Resort Constructors Inc., should no longer appear in the Abstract of Bids for being non-responsive. But the abstract of bids showed the bid of MDL Resort amounting to P55,420,694.57 under column Bidder 3. This would only show that the BAC did not conduct the required bid evaluation and post-qualification as required under RA 9184. Of course, the bid evaluation and post qualification did not took place because the documents were just ante dated as instructed by Mayor Aldrin San Pedro.

9. The technical proposals submitted by AF-FM Builders and AP Melendrez Construction Inc., would also show another proof that indeed this project as instructed by Mayor Aldrin San Pedro was only done in papers. The notary public for the Affidavit of Disclosure of No Relationships (Annex E), Affidavit of Site Inspection (Annex F), Certification as to Compliance of Existing Labor Laws and Standards (Annex G), Authority of Signatory/Secretary’s Certificate of AM-FM Builders and AP Melendrez Construction Inc. (Annex H), were notarized by the same Notary Public Atty. Delfin R. Agcaoili Jr on October 28, 2008 and was entered in Doc. No. 214, 215, 216 and 217 for AM-FM Builders and in Doc. No. 222, 223, 224, 225 under Page No. 22 and 23 respectively. If indeed the bidding took place on October 17, 2008 why would the technical documents of AM-FM Builders and AP Melendrez Construction Inc., which supposedly part of the technical envelope to be submitted to BAC on or before October 17, 2008 showed a notarized documents dated October 28, 2008? This could already be a ground for disqualification of bidders but since this was just a paper bidding ante dated as instructed by Mayor Aldrin San Pedro, the BAC members did not follow the procedures for the evaluation of bid documents as required under RA 9184.

10. The bidders bond submitted by the bidders would also show a proof that the bidding for this project was attended with irregularities and anomalies. The bidders bond of the three (3) bidders were issued by CAP GENERAL INSURANCE CORPORATION on the same date, October 17, 2008, with consecutive policy numbers. AM-FM bidders bond no. 00911 (Annex I), MDL Resort Constructors Inc., bidders bond no. 00912 (Annex J) and AP Melendrez Construction Inc., bidders bond no. 00913 (Annex K). Was this a coincidence that on the same day of the opening of bids on October 17, 2008, these three bidders went together to the said insurance company and bought bidders bond with a consecutive policy numbers? The bidders did not even bother to sign the bidders bond which already constitute a ground for disqualification but since this was a paper bidding only as instructed by Mayor Aldrin San Pedro, the procedures in the opening and receipt of bids under RA 9184 was never followed.

11. AM-FM Builders was not technically and legally qualified to undertake a project due to the limitation of his PCAB License. In order to cure the flaw, AM-FM Builders submitted a document to the BAC a Joint Venture Agreement (Annex L) with PDJ Integrated Construction, a company owned by Engr. Tirso B. De Jesus however, the said document was not signed by Engr. Tirso B. De Jesus and was never notarized therefore did not take effect. This observation was subject of Notice of Suspension issued by then Auditor Ireneo Manalo.

12. Sometime in the second week of May 2011, I received a copy from the Legal Office a subphoena duces tecum from the Office of the Ombudsman dated May 4, 2011 requiring the BAC to submit the complete bidding documents of the Construction of Four (4) Storey Thirty (30) Classroom School Building (Phase II) under CPL-09-0907 (Annex M). So as instructed by Mayor Aldrin San Pedro, I submitted to the legal office the ante dated bidding documents of the bidders which was submitted by legal office to the office of the ombudsman. The bidding documents included, the ante dated post qualification report of the bidders. In the ante dated post-qualification report of AM-FM Builders (Annex N), showed that the company was responsive in all the requirements for Eligibility, Technical and Financial Envelope as provided for under RA 9184, but the evidence shown in Section 8,9 10 of this complaint proved that AM-FM Builders was non-responseive and therefore disqualified. In the ante dated post-qualification report of AP Melendrez Construction Inc., (Annex O), showed that the company was responsive in all the requirements for Eligibility, Technical and Financial Envelope as provided for under RA 9184, but the evidence shown in Section 8,9 10 of this complaint proved that AP Melendrez Inc., was non-responseive and therefore disqualified. In the ante dated post-qualification report of MDL Construction Inc., (Annex P), showed that the company was responsive in all the requirements for Eligibility, Technical and Financial Envelope as provided for under RA 9184, but the evidence shown in Section 7,8,9 10 of this complaint proved that MDL Construction Inc., was non-responsive and therefore disqualified. Another document which was ante dated and made to appear on October 2, 2008 was the Notice of Eligibility Check for AM-FM Builders (Annex Q). In the said notice the BAC informed Mr. Oscar Martinez, general manager of AM-FM Builders that as per record of BAC, the company has 1) Correct PCAB License 2) Adequate Financial Capability and 3) Proper Work Experience therefore making the company eligible to participate in public bidding but Section 10 of this complaint proved otherwise. Other ante dated documents submitted to the Office of the Ombudsman were, Eligibility Data Sheet (Annex R), Bid Data Sheet (Annex S), Special Conditions of Contract (SCC) (Annex T), in this was an ante dated document and was prepared in haste discrepancies in dates were observed Section 1.17 of SCC showed that the intended completion date was June 2009 and Section 1.28 of the SCC showed that the start date was October 24, 2009 when the said transaction was ante dated on October 2008.

13. And sometime in July 2011 I was again given a subphoena duces tecum from the Office of the Ombudsman requiring the BAC to submit certification of all the projects awarded to AM-FM Builders. But until now there was no news about the progress of CPL-09-0907. Because of the very close relationship of Mr. Oscar Martinez to Mayor Aldrin San Pedro, whose son Mr. Alvin Martinez married Ms. Jasmine San Pedro-Martinez, sister of Mayor Aldrin San Pedro, he was able to corner the biggest and juiciest infrastructure contracts of the City. I prepared a table below showing few of the infrastructure projects awarded to AM-FM Builders;

Name of Projects Contract Amount
1. Perimeter Fence at Villa Carolina I, Tunasan, Muntinlupa City Php 2,715,368.87
2. Construction of Four (4) Storey Thirty (30) Classroom School Building at Pamantasan ng Lungsod ng Muntinlupa, NBP Reservation, Muntinlupa City (Phase 2) Php 55,415,237.51
3. Construction of Four (4) Storey Thirty (30) Classroom School Building at Pamantasan ng Lungsod ng Muntinlupa, NBP Reservation, Muntinlupa City (Phase 2) Additional Works Php 14,000,000.00
4. Construction of Four (4) Storey Thirty (30) Classroom School Building at Pamantasan ng Lungsod ng Muntinlupa, NBP Reservation, Muntinlupa City (Phase I) under the dummy AP Melendrez Const. Inc. Php 55,000,000.00

5. Construction of Road, Sidewalk and Drainage at Type C, NBP Reservation, Poblacion, Muntinlupa City Php 11,897,830.60
6. Street Lighting (Rodriguez St., Tunasan, Pacwood Entrance, Tunasan, RMT Industrial, Tunasan, Marcelo Road Sucat, San Jose Alabang, Soldiers Hills, Putatan, Madrigal, Ayala Alabang, Alabang Hills, Cupang, Muntinlupa City Php 21,045,160.35
7. Street Lighting at Victoria Homes, Tunasan, Muntinlupa City Php 7,886,636.43
8. Construction of Covered Court, Perimeter Fence and Protective Grills at Muntinlupa Science High School, Tunasan, Muntinlupa City Php 20,996,000.00
9. Construction of Various Structures/Fixtures at Muntinlupa Science High School, Tunasan, Muntinlupa City Php 15,969,579.55
10. Street Lights (PPTA Road) Alabang to Sucat Php 15,000,000.00

14. When former Auditor Ireneo Manalo learned about the said subphoena sometime in September 2011, he immediately wrote a management letter addressed to Mayor Aldrin San Pedro to comply with the submission of bidding documents for the project. Then sometime in October 2011, former Auditor Ireneo Manalo issued a Notice of Suspension for the Construction of Four (4) Storey Thirty (30) Classroom School Building (Phase II) detailing the observed anomalies in the transaction.

15. The contract of AM-FM builders amounting to Php55,415,237.51 for the Construction of Four (4) Storey Thirty (30) Classroom School Building (Phase II) (Annex U) was again notarized by the same Notary Public Atty. Delfin R. Agcaoili Jr on October 24, 2008, did not undergo ratification or prior authorization from the Sangguniang Panlungsod which is a requirement under RA 9184 since this project was not in the APP of the City for 2008 in violation of Section 7 of RA 9184.

16. In view of the aforementioned facts, I pray that all the public officials mentioned and involved in these anomalies be placed in a preventive suspension in accordance with Section 24 of RA 6770 pending investigation of the instant case.

17. That I reserve the right to file Supplemental Affidavit including all the documents in support hereof.

18. That I attest to the veracity of the foregoing statements.

IN WITNESS WHEREOF, I hereby affix my signature this 9th day of May 2012 in Quezon City, Philippines.

ABEL L. SUMABAT
Affiant

SUBSCRIBED AND SWORN TO BEFORE ME this 9th day of May 2012 in Quezon City, Philippines

Note: Docketed as OMB-C-C-12-0199-E for criminal case
Docketed as OMB-C-A-12-0205-E for administrative case

REPUBLIC OF THE PHILIPPINES
QUEZON CITY

COMPLAINT-AFFIDAVIT

I, ABEL L. SUMABAT, of legal age, with residence and postal address at B4 L13 Isaiah St., San Marino Square Paliparan, Dasmarinas Cavite, after being sworn to in accordance with law and say;

1. I respectfully move for a reinvestigation and re-opening of the previous case (OMB-C-C-10-0240-F) filed by Mr. Rafael “Paeng” Arciaga against Mayor Aldrin San Pedro for violations of Section 7, 13.3, 17.1, 20.1,21.1, 21.2, 22.1, 25.1, 29, 30, 34, 65.1 c, 65.2 c and d, 65.3 d, and other pertinent provisions of R.A. No. 9184 otherwise known as Government Procurement Reform Act; Section 3(a)(e)(g) of R.A. No. 3019 aka Anti-Graft and Corrupt Practices Act; the pertinent provisions of R.A. No. 7160 aka The Local Government Code of 1991; and Art. 217 (Malversation of Public Funds) of Revised Penal Code;

2. In addition, please implead as additional respondents the following individuals, namely:

• Mrs. ELIZA P. MENDOZA, proprietor, CLMP Trading, Address: 70-C Paz St., Morning Breeze Subdivision, Caloocan City;

• Ms. NELIA A. BARLIS, former City Treasurer of Muntinlupa with office address at City Government of Makati, Makati City

• Mr. AVELINO ORELLANA, City Budget Officer, for certifying the existence of available appropriation when in fact there was one, with office address at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

• Mr. EDWIN T. SUITADO, OIC-Accountant, for certifying as to the completeness of supporting documents when in fact it was not complete, with office address at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

• Ms. ELVIRA TULAY, Assistant to the City Accountant/Member BAC Secretariat, with office address at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

• Mr. ROMEO PUCYUTAN, OIC-City Treasuere, for certifying availability of fund when it fact there was none, with office address at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City;

• All BAC members, TWG members and BAC Secretariat members namely:

Engr. ROBERTO M. BUNYI, BAC Chairman
Atty. MICHAEL RACELIS, BAC Vice-Chairman
Engr. VICENTE NAVARRO, BAC Member
Mr. PETER SALONGA, BAC Member
Mr. RODOLFO OLIQUINO, BAC Member
Ms. SONIA LAURETA, BAC Member/Head, Procurement Office
Engr. EDUARDO BAUTISTA, TWG Member
Engr. GLENN SANTOS, TWG Member
Arch. RODERICK ESPINA, TWG Chairman
Ms. MARISSA GUERREO, BAC Secretariat member

All of whom can be served with the processes of this Honorable Office at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City ;

• And all the members of the 5th Sangguniang Panglungsod of Muntinlupa who signed Ordinance No. 08-036 dated March 31, 2008 and SP Resolution No. 10-353 dated March 8, 2010 namely, Coun. ALLAN REY CAMILON, Coun. MA. LUISA BABARAN ECHAVEZ, Coun. MARGARITA AMYTHYST PATDU-LABIOS, Coun. MELCHOR TEVES, Coun. Atty. ICASIANO DELA REA, Coun. FRANCIS IAN T. BAGATSING, Coun. MAMERTO SEVILLA JR., Coun. ROBERT ABAS, Coun. JOSELITO AREVALO, Coun. VERGEL ULANDAY, Coun. Atty. REY BULAY, Coun. CESAR PAGKALINAWAN, all of whom can be served with the processes of this Honorable Office at City Government of Muntinlupa, National Road, Putatan, Muntinlupa City:

3. On 20 and 23 February 2012, in my capacity as a permanent employee of the City Government of Muntinglupa occupying the concurrent positions as Internal Auditor IV and the Head of the Bids and Awards Committee Secretariat (BAC), I requested for a fact finding investigation on the following irregularities, to wit:

“In April 30, 2008 a rigged bidding was again conducted for the Supply and Delivery of Trolley Bags amounting to P22M. The said project was taken from SB#1 source of which is the 1B loan from landbank. However, the landbank management did not approved it since the purchase of trolley bag is not a capital outlay nor it is an infrastructure project. So at the time the contract was entered into on May 6, 2008 was null and void since there was no available fund for this project. The bidding process were all done in papers. In order to circumvent the purpose of public bidding, the project was not published in a newspaper of nationwide circulation, nor posted in the Philgeps as required under RA 9184, there was no invitation from the COA and observers. There was no eligibility check conducted. The supplier was not technically qualified to undertake the project due to its lack of experience as required under RA 9184 that it should have completed a similar project amounting to at least 50 % of the ABC. There was no variance between the ABC and the Abstract of Bids meaning the City did not get any discount from the supplier considering the big volume of transaction. The contract was awarded on May 6, 2008 and paid on May 26, 2008. Meaning the lead time in the production, printing and delivery of trolley bags is only 20 days. The said purchase was not included in its 2008 APP again in violation of the provisions of RA 9184. as a matter of fact just recently reiterated its request for the management to submit an approved APP for this project. Due to its noted deficiencies the COA has issued Notice of Suspension No. 2009-07 which until now remains unsettled and has matured into Notice of Disallowance considering that it has lapsed the grace period of 90 days given by COA to settle its Notice of Suspension.” (Annex A hereof)

1. I am filing this as a new complaint on the grounds of newly found pieces of evidence which I submitted in my supplemental complaint-affidavit dated February 23, 2012;

2. I found out that the same project was a subject of complaint which was filed by certain at the Office of the Ombudsman on May 7, 2010 with case number OMB-C-C-10-0240-F and that the complaint was subsequently dismissed on July 25, 2011;

3. These new pieces of evidence were not available during the previous investigation which would materially affect the order or decision made by the investigating prosecutors.

4. As the Head of the Bids and Awards Committee Secretariat of the City Government of Muntinlupa, my functions and responsibilities are as enumerated in Section 14.1 of RA 9184 are as follows:

a) Provide administrative support to the BAC;
b) Organize and make all necessary arrangements for BAC meetings and conferences;
c) Prepare minutes of meetings and resolutions of the BAC;
d) Take custody of procurement documents and other records;
e) Manage the sale and distribution of Bidding Documents to interested bidders;
f) Advertise and/or post bidding opportunities, including Bidding Documents, and notices of awards;
g) Assist in managing the procurement processes;
h) Monitor procurement activities and milestones for proper reporting to relevant agencies when required;
i) Consolidate PPMPs from various units of the procuring entity to make them available for review as indicated in Section 7 of this IRR; and
j) Act as the central channel of communications for the BAC with end users, PMOs, other units of the line agency, other government agencies, providers of goods, infrastructure projects, and consulting services, observers, and the general public.

5. Mayor ALDRIN L. SAN PEDRO personally instructed me sometime in the month of January 2008 as the Head of BAC Secretariat to award the contract in the amount of Php 22,000,000.00 for the purchase of 40,000 pieces Trolley Bags to CLMP Trading. Mayor Aldrin San Pedro told me that this project is his “pabaon” to Ms. Nelia Barlis, former City Treasurer of Muntinlupa, who at the time will be transferred to Makati City. Mayor Aldrin San Pedro told me to facilitate the release of Purchase Order as early as February 2008 as requested by Ms. Nelia Barlis so that the fabrication of 40,000 bags could start already and be made available on or before the opening of the classes since the fabrication of 40,000 pieces of trolley bags with print would take two (2) to three (3) months to complete according to Ms. Nelia Barlis. So upon the instruction of Mayor Aldrin San Perdro an undated Purchase Order No. 08446 (Annex B hereof) amounting to P22,000,000.00 was signed by Mayor Aldrin San Pedro and issued sometime in February 2008 even without approved appropriation and the benefit of public bidding in violation of pertinent provisions of RA 7160 and RA 9184. The reason why PO No. 08446 was undated because at the time PO No. 08446 was issued there was no approved appropriation and no public bidding was conducted. A Purchase Order is a procurement document that is pre-numbered for control purposes and a close scrutiny of the document would show that the undated PO number 08446 amounting to Php 22,000,000.00 for the purchase of 40,000 trolley bags belongs to the series of PO’s issued between January and February 2008. PO Numbers 08608 and 08609 dated March 5, 2008 (Annex C hereof) for the purchase three (3) units brand new fire trucks and one (1) unit brand new aerial ladder amounting to P103,040,000.00 had a serial number 08608 and 08609 while the serial number for the undated PO for trolley bags was 08446 when in fact the paper bidding for trolley bag as it appeared in the Abstract of Bid (Annex C-1 hereof) was conducted on April 30, 2008 while the bidding for three (3) units brand new fire trucks and one (1) unit brand new aerial ladder was on March 3, 2008 (Annex C-2 hereof). The serial number of PO for the purchase of 40,000 piece trolley bags which was bidded on April 30, 2008 as reflected in Abstract of Bids should be in higher number than the serial number of PO issued for the purchase of three (3) units brand new fire trucks and one (1) unit brand new aerial ladder which were purportedly bidded on March 3, 2008 as reflected in the Abstract of Bids (Annex C-3 hereof). Another proof that this contract was awarded way before the paper bidding was conducted is the issuance of undated Notice of Award (Annex C-4 hereof) and Notice to Proceed (Annex C-5 hereof). When the paper bidding was conducted on April 30, 2008 , the BAC issued a resolution declaring Lowest Calculated and Responsive Bid (LCRB) and Recommending Approval (Annex C-6) dated May 6, 2008 which was signed by Mayor Aldrin San Pedro on the same date, May 6, 2008. Granting arguendo that May 6, 2008 was also the date when the Notice to Proceed was received by CLMP Trading, it would mean that it took only sixteen (16) days to fabricate and deliver the 40,000 pieces of trolley bags with print because an LBP check number 453695 amounting to Php 20,821,428.58- net of tax- (Annex D hereof) was already issued to CLMP Trading on May 26, 2008. In a news report written by Mr. Ben R. Rosario of Manila Bulletin on its July 21, 2009 issue, Dir. Roland Rey of Commission on Audit said that the 40,000 pieces trolley bags were delivered on May 9, 2008 (Annex D-0 hereof). Impossible? Not in this case because the fabrication was made as early as February 2008 when the undated Purchase Order was issued sometime in February 2008 even without approved appropriation, and without the benefit of public bidding, in violation to COA rules and regulations, RA 7160 and RA 9184, otherwise known as, Government Procurement Reform Act. It is illegal, not impossible. The bidding processes were all done in papers only. In order to circumvent the purpose of public bidding, the project was not published in a newspaper of nationwide circulation, not posted in the PHILGEPS and City Website nor posted in the bulletin board in the vicinity of the premises of City Government as required under Section 21 of RA 9184, there was also no invitation to the COA and observers in violation to Section 13 of RA 9184;

6. Other glaring evidences that this project was a result of paper bidding were the bonds issued to CLMP Trading by CAP Gen. Insurance Corporation. Firstly, the Bidders Bond No. G (2) 00561 dated April 30, 2008 on the face of the document (Annex D-1 hereof). Bidders bond is part of the technical proposal of the bidder and submitted to BAC on or before the opening of bid which in this case was on April 30, 2008, and non-submission of bidders bond or any defect appearing in the document would be a ground of disqualification. On the leftmost bottom part of the document the space for the signature of Ms. Eliza Paje Mendoza as General Manager of CLMP Trading was unsigned (Annex D-2 hereof) nor there were signatures of witnesses (Annex D-3 hereof) as required in the document. This could already be a ground for disqualification. But why was CLMP Trading not disqualified? The answer is on the page two of the bidders bond no. G (2) 00561 (Annex D-4 hereof). This document was notarized by Atty. Gregorio P. Marquez, a notary public with PTR No. 031456 and IBP No. 699214, only on May 29, 2008 (Annex D-5 hereof) twenty-nine days (29) after the paper bidding was conducted when this document should have been part of the technical proposal of CLMP Trading. This would only mean that what took place on April 30, 2008 was only a paper bidding in violation of RA 9184. Secondly, the Performance Bond No. G (13) 00566 (Annex D-6 hereof) with a date on the face of the document May, 6, 2008, on the rightmost bottom part of the document notice that the signature of Ms. Eliza Paje Mendoza was lacking (Annex D-7 hereof), this again another violation of RA 9184, on the second page of Performance Bond No. G (13) 00566 (Annex D-8 hereof). Again, this Performance Bond No. G (13) 00566 was notarized by Atty. Gregorio P. Marquez, a notary public with PTR No. 031456 and IBP No. 699214, only on May 29, 2008 (Annex D-9 hereof) exactly three (3) days after LBP check number 453695 amounting to Php 20,821,428.58 net of tax was issued to CLMP Trading on May 26, 2008. Thirdly, the Surety Bond no. 00650 issued on May 14, 2008 (Annex D-10 hereof), take note on the leftmost bottom part of the document the signature of Ms. Eliza Paje Mendoza as General Manager of CLMP Trading was unsigned (Annex D-11 hereof), on the second page of Surety Bond No. 00650 (Annex D-12 hereof), again, this document was notarized by Atty. Gregorio P. Marquez, a notary public with PTR No. 031456 and IBP No. 699214, only on May 29, 2008 (Annex D-13 hereof). If only this project had been published and posted many suppliers would have joined the bidding considering the high number of players in the bag industry but since it was not done purposely as instructed by Mayor Aldrin San Pedro only one bidder expectedly participated and joined, and the favoured supplier CLMP Trading a dummy company used by Ms. Nelia Barlis. The City could have saved millions of pesos had the real public bidding been conducted. There is no variance between the Approved Budget of the Contract (ABC) of Php 22,000,000.00 as reflected in Purchase Request No. 02405 dated January 16, 2008 (Annex E hereof) and the amount of bid as reflected in the Abstract of Bid dated April 30, 2008 amounting to Php22,000,000.00 (Annex E-1 hereof). It defeated the very purpose of public bidding. In view of the irregularity of the transaction then COA Auditor Julie Moreno wrote a letter to Mayor Aldrin San Pedro dated September 29, 2008 (Annex F hereof) asking for the submission of bidding documents. The BAC Secretariat could not submit the bidding documents since the bidding was done only in papers. Then on April 15, 2009 Auditor Julie Moreno suspended the transaction by issuing Notice of Suspension No. 2009-07 (Annex G hereof) which until now remains unsettled and was subject again of another letter issued sometime in January 2012 by Ms. Leonara Sta. Maria, the newly appointed Auditor of Muntinlupa;

7. CLMP Trading was not legally, technically and financially qualified to undertake the project yet the contract was awarded to the said company, of course upon the instruction of Mayor Aldrin San Pedro. Section 23.5.1.3. of RA 9184 provides that the prospective bidder must have completed, within the period specified in the Invitation to Bid, a single contract that is similar to the contract to be bid, and whose value, adjusted to current prices using the National Statistics Office (NSO) consumer price indices, must be at least fifty percent (50%) of the ABC. However, in the case of Expendable Supplies, said single contract must be at least twenty five percent (25%). R.A. No. 9184 also provides that qualified bidder is one which should have completed a similar project amounting to at least 50 % of the ABC. However, CLMP Trading, at the time and/or prior to bidding has not undertaken a project similar to the contract to be bid nor it presented a contract that is at least fifty (50%) of the ABC and to say the least twenty five (25) percent of the ABC. CLMP Trading, was not even financially qualified to undertake the project. CLMP Trading declared in its Annual Income Tax Return for 2006 (Annex H hereof) a gross income of only Php 551,075.75 and a net income of Php 66,319.02. How come a company with a net income of Php 66,319.02 gets a single government contract amounting to Php 22,000.000.00. This is a ground for disqualification but since CLMP Trading was a favoured supplier and the bidding was done only in papers as instructed by Mayor Aldrin San Pedro, it was not disqualified. CLMP Trading did not submit a computation of its Net Financing Contracting Capacity or NFCC nor it submitted a bank deposit certificate or CLC of at least 10% of the ABC in violation to Section 23.5.1.4 of RA 9184. CLMP Trading also did not submit a Tax Clearance from the BIR as a post qualification requirement;

8. The purchase of 40,000 pieces trolley bags amounting to Php 22,000,000.00 was not included in the Annual Procurement Plan for 2008 nor was it included in the amended APP for 2008. The observation and audit finding imbedded in COA Report (Annex B, p.28) that the purchase of 40,000 trolley bags was not included in the in the Annual Procurement Plan of Muntinlupa City for 2008 in violation to Section 7 of RA 9184 was correct. When the Notice of Suspension No. 2009-07 dated April 15, 2009 was issued, almost one year after the transaction occurred, I was immediately instructed by the respondent City Mayor Aldrin San Pedro to produce an ante-dated copy of APP dated May 15, 2008 to comply with the NS and which was submitted to COA Auditor Julie Moreno entitled Amended Annual Procurement Plan for 2008 but it was not accepted by Auditor Julie Moreno saying that APP was done only after the purchase has been made. In page 29 of COA Report for 2008 it says that “Review, however, of the APP disclosed that this was prepared and submitted only after the purchase was undertaken and this observation brought to the attention of the management. Likewise, it was noted that it was not approved by the Sangguniang Panlungsod. These situations then rendered the APP ineffective.” When Purchase Request 2405 dated January 16, 2008 for the purchase of 40,000 pieces Trolley bags with print amounting to P22M was signed by Mayor Aldrin San Pedro on January 16, 2008, it was not included in the APP simply because on January 26, 2008 there was no approved appropriation under the 2008 Executive Budget for the said project;

9. The said project was still a subject of Notice of Suspension (NS) No. 2009-07 dated April 15, 2009 (Annex I hereof) and pursuant to Section 82 of PD 1445 this should have been already disallowed by the Auditor since the settlement of NS is within 90 days only from the date of issuance. Recently, a letter from Auditor Leonora Sta. Maria in January of 2012 requesting for the submission of bidding documents is a proof that indeed this project has not been cleared or settled with the COA;

10. On March 31, 2008, Sangguninan Panglungsod passed Ordinance No. 08-036, (Annex J) “”AN ORDINANCE APPROPRIATING THE AMOUNT OF ONE BILLION PESOS (PHP1,000,000,000.00) AS SUPPLEMENTAL BUDGET NO. 1 FOR CALENDAR YEAR 2008 OF THE CITY OF MUNTINLUPA WHICH SHALL BE FUNDED FROM THE TOTAL AMOUNT DULY CERTIFIED BY THE CITY TREASURER AS FUNDS AVAILABLE FOR APPROPRIATION AMOUNTING TO ONE BILLION PESOS”. In the said ordinance, the Special Activities Fund (SAF) under the Mayor’s Office classified as Other Special Projects and Programs was allocated an amount of Php 54,590,000.00. This is where Mr. Avelino Orellana, City Budget Officer, charged the said project under Obligation Request No. 100-0804-03837 dated April 15, 2008 (Annex K hereof). However, the items belonging to Maintenance and Other Operating Expenditures (MOOE) – particularly SAF – and Personal Services in Ordinance Number 08-036 where the budget of trolley bags was taken were disapproved by Land Bank officials because the nature of the expenses is not a capital outlay or infrastructure projects as stipulated in the Loan Agreement. As a matter of fact, a certification was issued by Ms. Luz DS. Abalos, DM/Head, NCR Lending Centre of LBP, on September 22, 2010 that the bank did not grant a loan amounting to Php 22,000,000.00 to the City for the purchase of 40,000 pieces Trolley bags. So the Obligation Request No. 100-0804-03837 dated April 15, 2008 (Annex L hereof) which was signed and issued by Mr. Avelino Orellana, City Budget Officer, from which the budget for the purchase of trolley bags was taken was null and void and without legal basis. It is crystal clear that when Mayor Aldrin San Pedro entered into a contract with CLMP Trading in the amount of P22,000,000.00 for purchase of 40,000 pcs trolley bags on May 6, 2008, there was no approved appropriation in violation to pertinent provision of RA 7160 and RA 9184.

11. On March 8, 2010, almost two (2) years from the date of paper bidding on April 30, 2008 for purchase of 40,000 pieces trolley bags amounting to Php 22,000,000.00, Resolution No. 10-353 was passed and approved by the members of Sanggunian Panlungsod (Annex M hereof) “A RESOLUTION RATIFYING, CONFIRMING AND APPROVING THE PURCHASE OF 40,000 PIECES TROLLEY BAGS AMOUNTING TO TWENTY TWO MILLION PESOS (Php22,000,000.00) TAKEN FROM THE SPECIAL ACTIVITY FUND (SAF) AND SOCIAL AMELIORATION (SA) OF THE CITY MAYOR INTENDED FOR PRE-SCHOOL ANG GRADE SCHOOL PUPILS OF OUR CITY”. This resolution was a lame act of trying to hide and whitewash the illegal purchase of 40,000 pieces trolley bags for pre-school and grade school pupils of Muntinlupa City;

12. Sometime in April 2010, few weeks before the local and national election, Mayor San Pedro told me that he received an intelligence report as early as March of 2010 that somebody from the opposition would file a case against him about trolley bags using the Annual Audit Report for FY 2008. During that time an exit conference with COA was also about to take place, so before the exit conference, I was instructed by Mayor Aldrin San Pedro to specifically request from COA Director Rey Manuel the clearing of the findings on the purchase of 40,000 pieces trolley bags amounting to Php 22,000,000.00 from the status of implementation of prior year’s recommendations, of course in exchange for a sum of money. The following day after the exit conference, I was called by Auditor Ireneo Manalo at his office and showed me a document called the Status of Implementation of Prior Year’s Recommendation in Audit Observation No. 10. And, viola!, the previous remark on the Status of Implementation was changed from “Not Implemented” to “Fully Implemented”. This document was used by Mayor Aldrin San Pedro as his defence which mislead the investigating prosecutors and resulted to the dismissal of the previous case against Mayor San Pedro;

13. In view of the aforementioned facts, I pray that all the public officials mentioned and involved in these anomalies be placed in a preventive suspension in accordance with Section 24 of RA 6770 pending investigation of the instant case;

14. I reserve the right to file Supplemental Affidavit including all the documents in support hereof.

IN WITNESS WHEREOF, I hereby affix my signature this 9th day of May 2012 in Quezon City, Philippines.

ABEL L. SUMABAT
Affiant

SUBSCRIBED AND SWORN TO BEFORE ME this 9th day of May 2012 in Quezon City, Philippines. I hereby certify that I have personally examined the affiant and that I am satisfied that he voluntary executed and understood his affidavit.

Administering Officer