ILIGAN City mayor Frederick Siao and nine other city officials have been acquitted by the Sandiganbayan of a graft charge filed against them in 2017 in connection with the lease contract on a private property used as a public transport terminal.
In a 91-page decision promulgated January 27, 2023, the anti-graft court’s Third Division held that the lease contract was valid and that the terminal served an urgent purpose that benefited city residents.
Likewise, the court noted that the Southbound Terminal has proven profitable for the city government, earning revenues on terminal space and collections from use of additional facilities.
Other than Siao and Cruz, also acquitted were Sangguniang Panlungsod members Ruderic Marzo, Moises Dalisay Jr., Providencio Abragan Jr., Riza Jane Magaro, Josel Zalsos, Marlene Young, Ariel Anghay, and Bayani Areola.
The complaint was filed by former acting administrator Dexter Rey Sumaoy who claimed that the lease deal did not go through public bidding which was a violation of RA 9184 or the Government Procurement Reform Act.
Prosecutors also noted that property owner Kiwalan Lumber Company (KLC) has stockholders who are relatives of defendant Lawrence Lluch Cruz, the incumbent mayor in 2004 when the lease contract was signed.
However, the court held that its review of the evidence presented showed the lack of public bidding was justified since the creation of a public transport terminal was an urgent need in light of the worsening traffic congestion in the area and its negative effect on the environment and the city’s economy.
“(The) daily occurrences of vehicular accidents and collisions, loss of income and opportunity while stuck in traffic, wastage of fuel, road rage incidents, economic loss and harmful effects to the environment, to name a few, are common perils posed by traffic congestion which should immediately be addressed,” the court pointed out.
The court held that the location of Kiwalan Lumbers property was the most suitable site for the terminal due to its proximity to the city boundaries and the lack of legal encumbrances on the lot that would have hampered project implementation.
The allegation of disadvantage to the city government was also disproved as the court noted that the approved rental rates were within the range recommended by the Appraisal Committee and stayed at the same 2004 levels even after several years.
A clause in the agreement even allowed the Iligan City government the right to terminate the contract, if at any point it finds the Southbound Terminal no longer economically viable.
“It is thus clear from the foregoing that the subject transactions were not simulated as what the prosecution proposes. On the contrary, the subject transactions were products of prudent and careful review, studies and deliberations on the possible solutions to the City’s problem of traffic congestion,” the court added.
As further proof that the terminal was beneficial to the public, the court pointed out that during his time as acting city administrator, the complainant did not make any effort to terminate the contract even when he was in a position to do so.
“Complainant Atty. Dexter Rey Sumaoy, while condemning the alleged irregularity in the execution of the subject Lease Agreement and its eventual extension in 2013, permitted the continued operations of the Southbound Terminal during his time as the acting City Administrator,” the Sandiganbayan said.
