Metropolitan Waterworks and Sewerage System (MWSS) Administrator Leonor C. Cleofas, former administrator Reynaldo V. Velasco and six other executives face criminal and administrative charges before the Office of the Ombudsman (OMB) over the award to a Chinese contractor of the P10.8 billion New Centennial Water Resource-Kaliwa Dam Project (NCWS-KDP) in 2018.

In a complaint filed Friday, May 31, United Filipino Consumers and Commuters (UFCC) and Water for All Reform Movement (WARM) President Rodolfo B. Javellana Jr. asked the OMB to conduct a preliminary investigation against Cleofas, Velasco, and their co-respondents over the alleged violations.

Javellano and his groups also asked the OMB to order the preventive suspension of those charged.

Also charged were Deputy Administrators Jose Dorado Jr. and Walter M. Parosa, and bids and awards committee (BAC) members Anabela S. Altuna, Jocelyn M. Toledo, Ronald S. Abrigo, and Ramon R. Fabul. 

The P10.857-billion project, which is funded under a loan agreement with the Export-Import Bank of China (EXIM Bank), was awarded by the MWSS in 2018 to the China Energy Engineering Corporation (CEEC).

At that time, Velasco was still administrator and Cleofas, who became MWSS administrator in 2022, was deputy administrator and head of the Bids and Awards Committee (BAC).

Javellana explained he filed the complaint against the respondents “for intentionally committing graft and corrupt practices (Section 3e, g, i, and j of RA 3019), for gross violation of the government procurement law (RA 9184) and disregarding the mandatory provisions of Letter of Instructions No. 1096).”

Letter of Instruction 1096, Series of 1980, instructs that “the contract shall not be binding and the Commission on Audit (COA) is directed to disapprove the disbursement of funds,” he said.

He also alleged that “all respondents directly participated in various contracts and transactions in relation to the Kaliwa Dam Project which are manifestly and grossly disadvantageous to the Government in violation of Section 3 (e), (g), (i) and (j) of RA 3019 which constitutes corrupt practices of a public officer under the Anti-Graft and Corrupt Practices Act.”

In seeking the preventive suspension for six months of those charged, Javellana claimed that the evidence of guilt is strong and their continued stay in office will prejudice the charges filed against them.

Apart from allegedly violating several provisions of Republic Act (RA) 3019 or the Anti-Graft and Corrupt Practices Act, the complainant accused all eight respondents of having violated Sec. 23 and 45 of Batas Pambansa (BP) 68 or the Corruption Code of the Philippines; usurpation of authority or official functions under Article 177 of the Revised Penal Code (RPC); and Section 59 of RA 8371 or the Indigenous Peoples’ Rights Act of 1997.

The respondents are also accused of gross neglect of duty, inefficiency and incompetence in the performance of duty. 

In his complaint, Javellana said: “The contract agreement was signed without a BAC Resolution and Board Resolution awarding the contract to China Energy in violation of Section 37.1 and Section 37.1.2 of RA 9184.”

He also alleged that the respondents ignored the Office of the Government Corporate Counsel (OGCC) recommendation that “a Board Resolution be issued awarding the contract to CEEC."

Thus, he claimed, the “MWSS through its 2018 BAC and 2018 Board of Trustees failed to adhere to such OGCC recommendation in violation of the Letter of Instructions No. 1096 16 December 1980 and RA 3019 or the Anti-Graft and Corrupt Practices Act.”

At the same time, he said “the Commercial Contract was also signed prior the issuance of the Notice of Award in violation of 37.2.1 of IRR (implementing rules and regulations) of RA 9184” and “even before the Loan Agreement with China was signed.”

He claimed that the notice of award (NOA) was “issued on 11 Dec. 2018 after the commercial contract was already signed on 20 Nov. 2018 in violation of Sec. 37.2 of IRR of RA 9184.”

He also claimed that the notice to proceed (NTP) was also issued 11 months and 16 days after the contract was signed even though Sec. 37.4.1 of IRR of 9184 mandated that “the NTP be issued within seven (7) calendar days from approval of the contract.”

"Respondent Cleofas, in numerous transactions, disbursed extraordinary funds amounting to at least P309,840,012.16 to CEEC pertaining to the stand by costs for the Kaliwa Dam Project without authority and with malicious intent to usurp the authority of President Ferdinand R. Marcos Jr., which constitutes the criminal offense of Usurpation of Official Functions under Article 177 of the Revised Penal Code,” he further alleged.

"Due to the incompetence and inefficiency of Administrator Cleofas in the implementation of the project standby costs were incurred in favor of China Energy which got paid without producing any output,” he also said in the complaint.