THE Supreme Court has upheld the graft conviction of former Laguna governor Emelio Ramon “ER” Ejercito over the insurance deal he awarded without public bidding when he was the mayor of Pagsanjan.
In a February 5, 2025 decision, the SC’s First Division, through Associate Justice Ricardo Rosario found Ejercito and Marilyn Bruel, owner of First Rapids Care Ventures (FRCV), guilty of violating Republic Act 3019 or the Anti-Graft and Corrupt Practices Act and sentenced them eight years in prison and permanently banned from holding public office.
The decision stemmed from a complaint filed by the United Boatmen Association of Pagsanjan (UBAP), which accused Ejercito and members of the municipal council of awarding a contract to FRCV without public bidding.
Under the contract, FRCV provided accident insurance for tourists and boatmen at the Pagsanjan Gorge Tourist Zone, even though the company lacked a license from the Insurance Commission.
The Office of the Ombudsman filed charges against them before the Sandiganbayan.
The anti-graft court convicted Ejercito, Bruel and several council members.
In his defense, Ejercito argued that FRCV was the only qualified service provider and that public bidding was unnecessary. Bruel, on the other hand, claimed that the contract was for special services, not insurance.
But the High Court disagreed and held that the contract was for insurance and therefore classified as “goods,” requiring public bidding under the Government Procurement Reform Act.
“Exceptions to bidding are only permitted in rare cases, such as emergencies or multiple failed bidding attempts, which did not apply in this instance,” the SC said, adding that awarding the contract to FRCV through negotiated procurement did not pass muster.
“This method allows a government entity to directly negotiate a contract with a qualified contractor instead of holding a competitive bidding process, but it is only permitted in specific situations defined by law,” the SC added.
The SC said Ejercito knowingly gave FRCV an unfair advantage, bypassing legal procedures and ignoring clear red flags in violation of the law.
Aside from lacking a Certificate of Authority from the Insurance Commission, FRCV also got its registration from the Department of Trade and Industry and the Bureau of Internal Revenue just five days before it offered its services to Ejercito.
The High Court said this suggests that FRCV was created solely to provide specialized services to the local government of Pagsanjan despite having no prior experience.
“By purposely sparing FRCV from the rigors of the processes under the procurement law and consciously turning a blind eye to irregularities, Ejercito gave it unwarranted benefit, advantage, or preference,” the SC added.
Bruel was found guilty of misrepresenting FRCV’s qualifications and conspiring with Ejercito to secure the contract.
The SC acquitted the local council members due to lack of evidence.
