Biliran mayor indicted for graft over medicine purchase

Rappler
December 05, 2015

Mayor Eulalio Maderazo of the municipality of Caibiran in Biliran and 2 others face charges for purchasing P284,000 worth of medicines without public bidding.

MANILA, Philippines – The Ombudsman has indicted Mayor Eulalio Maderazo of the municipality of Caibiran in Biliran for the procurement of P283,335.15 worth of medicines without public bidding.

Municipal Treasurer Loreto Serdeña Jr and accounting department officer in charge Rodolfo Baguna also face charges for conspiring with the mayor for allegedly favoring supplier Andrea Medi Center.

“The supplier, Andrea Medi Center, was awarded the procurement contract without the benefit of a fair system in determining the best possible price for the government. The supplier was able to profit from the transaction without showing proof that their prices were the most beneficial to the government,” reads the 11-page resolution signed by Ombudsman Conchita Carpio Morales.

Not long after the municipal government purchased the medicines in August 2010 for its rural health unit, complaints about the contract reached the Ombudsman. Field investigators found that the purchase was done without public bidding, and payment was made without supporting documents.

The Office of the Ombudsman said Maderazo, Serdeña, and Baguna unlawfully resorted to shopping as an alternative mode of procurement. The purchase price, it noted, was beyond the P50,000 threshold allowed for a 4th class municipality.

This was probable cause to charge them for violation of Section 3(e) of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act, a statement from the Ombudsman said.