The House committee on good government and public accountability chaired by Rep. Johnny Ty Pimentel (2nd District, Surigao del Sur) on Monday decided to issue a show cause order for key personalities in its ongoing inquiry into the utilization by the Provincial Government of Ilocos Norte (PGIN) of its shares in the tobacco excise tax of locally manufactured Virginia-type cigarettes to buy motor vehicles.
The committee unanimously approved the motion of Deputy Majority Leader and Pampanga Fourth District Rep. Juan Pablo Bondoc to issue a show cause order to Mark Chua, the alleged boyfriend of Ilocos Norte Gov. Imee Marcos according to Pimentel; Irene Mendoza, secretary of Chua; Gilbert Suribas, Vice President for Operations of Granstar Motors and Industrial Corporation, supplier of the multi-cabs; and Michelle Galan, owner and CEO of The House of Precast, Inc., supplier of the busts for the Paoay Museum, to shed light on various issues related to the ongoing congressional inquiry.
In a separate press briefing, Pimentel explained that it was Chua who transacted with Fabian Go, President of Granstar Motors and Industrial Corporation, on the purchase of multicabs, following earlier inquiries made by Chua’s secretary, Irene Mendoza.
Pimentel said Chua did not represent himself as an employee of the Province of Ilocos Norte nor as connected to Marcos, and even paid for the multicabs using his personal check, so Go thought all the while that it was a private transaction.
Pimentel revealed that based on the documents, it can be concluded that the provincial government made a cash advance which could have been given to Chua, who paid for the multicabs the day after the said cash advance was made.
He said in the cash advance documents, the multicabs were priced P465,000 per unit, but the payment made by Chua was only P260,000. “So they made almost P195,000. I think, each. So, for a total of 110, in short, they made an overprice of P22M,” said Pimentel.
The panel is also investigating whether the tobacco farmers of Ilocos Norte, who are the intended beneficiaries of the province’s tobacco excise tax fund, have been receiving tangible benefits from the said fund.
The committee is also looking into the following transactions of the PGIN:
- Purchase of Portrait Bust Sculpture and services for the development of Paoay Museum on July 12, 2012;
- Materials and installation of Precast Concrete for Paseo de Paoay on July 18, 2012;
- Purchase of medicines and libspray 211 for distribution to the different municipalities on October 24, 2012;
- Purchase of Panlaban 5EC for distribution to the different municipalities on November 23, 2012;
- Purchase of medicines for distribution to the different municipalities on December 11, 2012.
Pimentel said House Resolution No. 882, introduced by Majority Leader Rodolfo Farinas (1st District, Ilocos Norte), Bondoc and Rep. Aurelio Gonzales Jr. (3rd District, Pampanga) “questioned the utilization by the province (of Ilocos Norte) of its share in the tobacco excise taxes of locally-manufactured Virginia-type cigarettes for procurements not specified under Republic Act No. 7171 and the manner but which such procurements were undertaken.”
Pimentel said House Resolution No. 1126, presented by Reps. Ariel Casilao (Party-list, Anakpawis), Carlos Isagani Zarate (Party-list, Bayan Muna), Emmi de Jesus (Party-list, GABRIELA), Antonio Tinio (Party-list, ACT TEACHERS), Arlene Brosas (Party-list, GABRIELA), France Castro (Party-list, ACT TEACHERS), and Sarah Jane Elago (Party-list, KABATAAN) “sought an inquiry in aid of legislation on the releases by the Department of Budget and Management (DBM) of funds from the tobacco excise tax to the Province of Ilocos Norte to determine if the intended beneficiaries received tangible benefits therefrom.”
“During the last hearing, tobacco farmers from Ilocos Norte testified that they did not receive any assistance from the province for their farming. The funds given them were loans to purchase farm implements,” according to Pimentel.
On the purchase by the provincial government of motor vehicles, Pimentel said previous hearings revealed that there was indeed an anomalous purchase.
He pointed out that the selling price of the motor vehicle from the dealer was much lesser than the unit price reported by the province as its acquisition cost.
“It was overpriced by P195,000 and with 110 motor vehicles reportedly procured by the province in years 2011 and 2012, that’s P21.45 million loss of public funds for the tobacco farmers,” he said.
Pimentel further said that the transactions violated Republic Act No.7171, Republic Act No. 9184 and COA Memorandum Circular 97-002.
“With regard to RA 7171, it clearly states that the excise taxes, the 15 percent excise taxes which are given to local government units, can only be used for cooperative development, livelihood projects, agro-industrial projects, and infrastructure projects. However, the province of Ilocos Norte used the excise taxes to purchase vehicles, which is not included in the matrix or menu of RA 7171,” Pimentel explained.
“Regarding RA 9184, dapat any procurement, especially with this big amount, the local government unit should conduct public biddings. Lalo na this involves P64 million. However, on the three transactions, the province of Ilocos Norte never conducted any public bidding. Ang ginawa, kinash advance po yung pera para pambayad sa equipment,” Pimentel said.
“Now with regard to COA Memo Circular 97-002, the province of Ilocos Norte violated this Memorandum Circular. What is this Memo Circular 97-002? It prescribes the guidelines for local government units with regard to cash advances. You can only make a cash advance for the payment of salaries, wages, payroll or travel. But the province of Ilocos Norte made cash advances for the payment of multi-cabs,” Pimentel said.
Pimentel emphasized that the mandate of the committee is “to look into the malfeasance, misfeasance and nonfeasance committed by public officials and employees, and address the same by recommending remedial legislation.”
“We have taken cognizance of the fact that some of the transactions by the Provincial Government of Ilocos Norte contained in COA Audit Memorandum as having been questioned for having used cash advances in violation of COA-prescribed rules,” Pimentel said.
“In consonance with the mandate of the committee on good government and public accountability, we will deal with the issue of governance and look into the illegal utilization of the funds from R.A. No 7171 in a questionable manner by which the Province of Ilocos Norte undertake procurements,” Pimentel, a former governor of Surigao del Sur, said.
Fariñas asked the Commission on Audit to look into the numerous cash advances made by the provincial government of Ilocos Norte for the purchase of various supplies and equipment. Fariñas pointed out the pattern and the splitting done in the amount of cash advances made by the provincial government.
On questioning by various House members, Eric Zerrodo, proprietor of Integrated Conservation Unlimited, Inc. and Salvador Joel Alanday of Artin Formal, who were commissioned by Marcos for the development of the Paoay Museum and portrait bust sculpture, respectively, revealed that there were no public biddings conducted for the said projects.
Zerrodo informed the committee that from the time Marcos floated the project to him until it was completed and the full payment was made, he thought that it was a family project as it was Marcos he was dealing with most of the time.
Bondoc presented documents showing that Zerrodo’s project was a project by the provincial government of Ilocos Norte, funded by taxpayers money, and subject to public bidding. However, Bondoc revealed that the provincial government, using fictitious documents and faking Zerrodo’s signature, made it appear that Zerrodo won the bidding for the project. (Congress)
