FORMER National Irrigation Administration (NIA) chief Carlos S. Salazar has been convicted by the Sandiganbayan of one count of graft and sentenced to six years and one month imprisonment with perpetual disqualification from holding another public office.
On top of the jail sentence, the anti-graft court’s Fifth Division also ordered the defendant to indemnify the NIA in the sum of P98.55 million, equivalent to the amount released as advanced payment to the contractor of the P712.366-million Libmanan-Cabusao Diversion Dam project in 2009.
Associate Justice and Fifth Division chairperson Rafael R. Lagos penned the 61-page decision released last June 24 and concurred in by Associate Justices Maria Theresa V. Mendoza-Arcega and Maryann E. Corpus-Mañalac.
The court found Salazar guilty of bypassing the procedure for big-ticket projects worth P500 million upwards, which required the review and prior approval of the National Economic Development Authority — Investment Coordination Committee (NEDA-ICC).
Records showed the NIA published an invitation for interested contractors to bid for the dam project in 2008 identifying it as a priority project of the Arroyo administration.
However, when the project was presented to the Regional Development Council (RDC), its chairman Joey Salceda emphasized that the project has to undergo evaluation by the NEDA-ICC and must first secure an Environmental Compliance Certificate (ECC) from the Department of Environment and Natural Resources (DENR).
A.M. Oreta and Co. Inc. was declared the winner of the public bidding held on October 13, 2008 after submitting a quote of P700.778 million.
On February 9, 2009, the RDC resolved to indorse the project for the approval of the NEDA-ICC.
NIA issued a P49.273 million check in favor of A.M. Oreta on May 28, 2009 as partial payment of the mobilization fund followed by another check for the same amount on September 8, 2009 representing the 15 percent advanced payment net of applicable taxes.
However, the project was suspended and eventually called off due to stiff objections from local residents who feared flooding and destruction of biodiversity in the water impounding site.
When required by the Commission on Audit to submit the necessary documents to support the release of the 15 percent advance payment, the NIA merely said the dam is a priority project of the Arroyo administration so that, despite the pendency of the NEDA-ICC review, it proceeded with the award of the project.
“This Court finds that accused Salazar acted with gross inexcusable negligence when he signed the contract and issued the Notice to Proceed… absent the required NEDA-ICC approval,” the Sandiganbayan ruled.
The court gave little weight to the defense claim that Salazar merely complied to instructions from higher authority since the dam was a priority project of the Arroyo administration.
The accused cited a memorandum dated October 6, 2008 from Malacañang, which Salazar said constituted “irresistible force” which he was not in any position to ignore.
