Ombudsman suspends San Simon mayor over alleged P155-M extortion

The Office of the Ombudsman has ordered the six-month preventive suspension of San Simon, Pampanga Mayor Abundio Simbulan Punsalan Jr. over serious administrative charges of grave misconduct, serious dishonesty, and conduct prejudicial to the best interest of the service.

The case stems from complaints filed by RealSteel Corporation representatives Irwin H. Chua and Melodie E. Arellano, and a separate filing by the National Bureau of Investigation (NBI), over what they described as an orchestrated extortion attempt by Mayor Punsalan.

According to the Ombudsman’s findings, the mayor demanded P125 million, later increased to P155 million, and subsequently reduced to P80 million, in exchange for the continued operations of RealSteel’s plant in San Simon and the noninterference of the Mayor’s Office in the implementation of the town’s local tax incentive ordinance.

The complaint detailed that Punsalan allegedly demanded P30 million in upfront payment on 5 August 2025, warning that failure to comply would lead to delays or nonissuance of business permits and the repeal of RealSteel’s tax incentives. He reportedly threatened to use his influence over the Sangguniang Bayan, whose members were described as his political allies.

Following these allegations, the NBI conducted an entrapment operation on 5 August 2025 in Mabalacat City, Pampanga, where Mayor Punsalan was caught in the act of receiving P30 million in pre-marked and dusted boodle money from RealSteel representatives.

The Ombudsman’s order stated that “the evidence on record strongly establishes the guilt of Respondent Punsalan,” adding that the nature of the charges—grave misconduct, serious dishonesty, and conduct prejudicial to the best interest of the service—if proven, warrants the penalty of dismissal from service.

It further emphasized that allowing Punsalan to remain in office could “prejudice the just, fair, and independent disposition of the present cases,” thus justifying the immediate enforcement of his preventive suspension under Section 24 of Republic Act No. 6770 (The Ombudsman Act of 1989).

The administrative complaints are rooted in the broader criminal cases previously filed by the NBI and RealSteel before the Sandiganbayan 7th Division for robbery by means of extortion, violation of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act), and the Comprehensive Firearms and Ammunition Regulation Act.

The Ombudsman’s preventive suspension order takes effect immediately upon receipt by the respondent and will remain in force until the termination of proceedings, but not to exceed six months unless delayed due to the respondent’s own actions.