Former Iloilo City mayor Jed Patrick E. Mabilog and incumbent Councilor Plaridel C. Nava II have been charged with graft before the Sandiganbayan for creating a towing company that was granted a contract by the city government.
The Office of the Ombudsman (OMB) charged Mabilog and Nava with violation of Section 3(h) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act. Bail of P90,000 was recommended for each of them.
Section 3(h) prohibits a government official from having financial or pecuniary interest "in any business, contract or transaction in connection with which he intervenes or takes part in his official capacity."
In filing the criminal charge, OMB prosecutors said that Mabilog contributed P500,000 as initial capital for the formation of 3L Towing Services and issued business and mayor's permits even without the application of Leny B. Garcia, the alleged dummy owner of the firm.
Nava, on the other hand, was charged for scouting suppliers of wheel clamps from China. He also allegedly prepared the documents for 3L Towing Services' registration with the Department of Trade and Industry (DTI) and Bureau of Internal Revenue (BIR).
The OMB said that the firm was eventually awarded the memorandum of agreement (MOA) with the Iloilo City government to undertake clamping and towing of illegally parked vehicles within its territorial jurisdiction without competitive process.
Thus, the OMB accused Mabilog and Nava of "intervening in their official capacity" for 3L Towing Services to enter into a MOA with Iloilo City, "all to the detriment of public service."