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Manila Bulletin devider Philippines devider National devider Sandiganbayan convicts ex-Palawan Gov Reyes, others in P1.5-B Malampaya fund scam

Sandiganbayan convicts ex-Palawan Gov Reyes, others in P1.5-B Malampaya fund scam

Published Jul 30, 2025 10:28 pm
The Sandiganbayan has convicted former Palawan governor Mario Joel T. Reyes and provincial planning and development coordinator Samuel V. Madamba II of 11 counts of graft for their involvement in the P1.5 billion Malampaya fund scam.
Reyes and Madamba were sentenced to a prison term ranging from six to 10 years and perpetually disqualified from holding public office.
On falsification of public documents, Materials Engineer Alfredo B. Padua has been convicted of 31 counts; Engineer IV Renato A. Abrina, 17 counts; Engineer Rolly V. Matudio, 12 counts; Engineer Bernard I. Zambales, two counts; Engineer Bayani T. Buenaventura, 11 counts; Engineer Cecilia C. Colegio, three counts; Lorenzo Leoncio of L.B. Leoncio Trading and Construction, two counts; Ulysses P. Consebido of Seven Digit Construction and Supplies, one count; and Resident Engineer Rosario P. Abacial, two counts.
They were sentenced to a prison term ranging from four years and two months to eight years and one day, and to pay a fine of P5,000 for each falsification conviction.
Provincial Budget Officer Luis M. Marcaida II and Sangguniang Panlalawigan Member Rolando E. Bonoan were acquitted of 11 graft charges each.
Reyes, Madamba, Provincial Accountant Orlando R. Colobong, and Provincial Legal Officer Elena Melchior V. Rodriguez were acquitted of three counts of graft.
Acquitted of one count of graft were Fernando G. Tiotangco and Rebecca S. Tiotangco of Anglos Trading and Construction; Rolando E. Bonoan and Armando R. Lustre Jr. of AR Lustre Jr. Construction; Bella C. Tiotangco of BCT Trading and Construction; Dennis C. Sandil of D.C. Sandil Construction and Realty Development, Inc.; Jesus L. Tan of GOLDROCK Construction and Development Corp.; Propero D. Gabayan Jr. of ICON Trading and Construction; Lorenzo B. Leoncio of L.B. Leoncio Trading and Construction; Rosanno C. Tagala of R.C. Tagala Construction; and Ulysses P. Consebido of Seven Digit Construction and Supplies.
Reyes was likewise acquitted of 22 counts of violation of Section 3(g) of Anti-Graft and Corrupt Practices Act for failure of the prosecution to prove his guilt beyond reasonable doubt.
Abrina was cleared in 61 falsification charges; Padua in 83 charges; Colegio in 14 charges; Patacsil in 13 charges, Leoncio in seven charges; Rubio in four charges; Bella Tiotangco in 22 charges; Rebecca Tiotangco in two charges; Zambales in two charges; Consebido in five charges; Matudio in 21 charges; Rubio in two charges; Sandil in two charges; Buenaventura in 10 charges; Gatinga in six charges; Panes in three charges; Abacial in four charges; Tagala in 10 charges; Llacuna in three charges; Salazar in two charges; Iglesia in two charges; and Cabiguen, Fernando Tiotangco, and Del Socorro in one charge each.
For violations of material provisions in government contracts, Abrina and Padua were acquitted in seven charges; Tagala in three counts; Matudio in two counts; Bella Tiotangco in two counts; and Colegio, Gatinga, Consebido, Abacial, Banzon, Llacuna, Iglesia, and Del Socorro in one count each.
The cases against Provincial General Services Officer Ferdinand S. Dilig, Provincial Engineer Charlie M. Factor, Provincial Administrator Romeo M. Seratubias, Rodolfo M. Gallardo of RODCEL Construction, Federico G. Tiotangco of BCT Trading and Construction, and Inspectorate Team Leader Manuel T. Cabiguen had been dismissed in light of their deaths.
The cases against Elizabeth A. Tisara of D.J. Builders Corporation, Resident Engineer Darrell S. Elivera, Efren D. Tabangay of E.D. Tabangay Construction, and Provincial Treasurer Teofilo S. Palanca Jr. have been archived pending their arrest.
In its decision, the Sandiganbayan said Reyes and Madamba failed to post the Invitation to Apply for Eligibility and to Bid in the Government Electronic Procurement System (GEPS) and on the website of the provincial government of Palawan.
"The requirement of posting of the intended bidding may not be belittled or simply shrugged off by any government entity as this is a crucial step that ensures transparency and fairness in the government procurement processes," the anti-graft court said.
It also said that Reyes, as head of the procuring entity, improperly evaluated the bid proposals, which led to the award of numerous or overlapping contracts to a single contractor with one set of key personnel.
The 625-page decision was written by Presiding Justice Geraldine Faith A. Econg with the concurrence of Associate Justices Edgardo M. Cardona and Arthur O. Malabaguio.
The Malampaya fund was sourced from the government's share in royalties and rentals on the oil and gas operations in the Camago-Malampaya reservoir in northern Palawan.
In 2009, it was agreed that P900 million from the special fund was to be used to help farmers who were affected by Typhoons Ondoy and Pepeng.
However, the funds were somehow diverted to the fake non-government organizations (NGOs) headed by Janet Lim Napoles.
In the case of Palawan during the time of Reyes, the province got its 40 percent share of the profits following the issuance of Executive Order No. 683 issued in 2007.
Unfortunately, there were several irregularities found when the provincial government decided to award the 209 contracts to 11 construction firms.
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