THE Office of the Ombudsman has indicted former Surigao del Norte governor now Rep. Francisco Matugas and former OIC provincial budget officer Ma. Myrla Padayhag for technical malversation for the alleged illegal transfer and disbursement of the province’s P60 million calamity funds in 2022.
In a 35-page resolution, the Ombudsman held that it found probable cause to file a criminal charge against the two local officials for the illegal use of the local government’s money and questionable transfer to the Department of Education-Surigao del Norte and Siargao Divisions.
Ombudsman Samuel R. Martires signed the ruling on June 24, 2025, which ordered the filing of the case in court, even as the anti-graft body dismissed due to lack of basis separate complaints for violation of the Anti-Graft and Corrupt Practices Act and plunder.
The case was based on a criminal complaint filed in 2023 by Provincial Environment and Natural Resources Officer (PENRO) Oscar Pospia Jr.
Graft investigators said the sum was taken from the Provincial Disaster Risk Reduction and Management (PDRRM) Fund although it was intended by Appropriation Ordinance No. 3 for disaster preparedness and response.
The paper trail led the panel of investigators to the finding that P20 million from the PDRRM Fund was transferred to the DepEd-Surigao del Norte Division for the procurement of Disaster Risk Reduction – Climate Change Adaptation (DRR-CCA) learning books for children.
A separate amount of P50 million was released to three DepEd Divisions. Of this amount, those that went to DepEd-Surigao del Norte Division and DepEd Siargao were cited as basis for the indictment, while the portion that went to DepEd Surigao City Division, totaling P10 million, was not touched, hence excluded from the case.
“Evidently, there was no ordinance authorizing Matugas to augment and transfer funds. Hence, the realignment and disbursement of funds amounting to a total of PHP60 million used in the procurement of the Disaster Risk Reduction – Climate Change Adaptation (DRR-CCA) mainstreamed learning materials and the supplementary learning materials had no basis and, therefore, illegal,” the Ombudsman said.
While the respondents invoked presumption of regularity and good faith relative to their actions, the Ombudsman held that the “mere act of diverting funds from purposes other than for which they were originally intended consummates the felony regardless of the lack of criminal intent.”
