Sandiganbayan junks ex-Cebu BAC member’s bid to reinvestigate graft case in garbage deal

The Sandiganbayan has junked the plea of a former bids and awards committee (BAC) member of Cebu City Hall, charged with graft alongside former mayor Michael Rama over a multimillion-peso garbage contract, to reinvestigate the case on the basis of alleged procedural errors in the prosecution’s filing.

BAC vice chair Lyndon Basan was indicted by the Ombudsman earlier this year for graft in connection with the awarding of P57.8 million in garbage collection contracts to three favored companies without competitive public bidding, in violation of the Government Procurement Reform Act (RA 9184). He was charged alongside four other BAC members, with Rama as the principal accused.

In his motion, Basan argued that the Ombudsman erred in filing the case with the Sandiganbayan, asserting that the charge was anchored solely on their supposed failure to comply with requirements under negotiated procurement in emergency cases. He claimed that had the Ombudsman raised this issue earlier in the investigation, he could have submitted documents to prove compliance with procurement rules and to refute allegations of bid rigging.

Records showed that the BAC opted for negotiated procurement instead of public bidding due to the alleged urgent need for waste disposal following the onslaught of Typhoon Odette in December 2021. The procurement law allows government agencies to resort to negotiated procurement in extraordinary circumstances, including calamities.

The Ombudsman, however, said the BAC’s recommendation — which Rama approved — resulted in contracts awarded to ACM Hauling Services (P4.96 million), Jomara Konstruckt Corp. (P4.99 million), and ARN Central Waste Management. ACM later secured an additional contract worth P12.83 million.

Despite the urgency of the situation, the Ombudsman argued that lapses were committed by Rama and the BAC members, including failure to exercise due diligence in verifying the eligibility of the contractors, in violation of procurement rules.

The Sandiganbayan ruled that Basan’s motion lacked merit and merely repeated arguments already resolved by the Ombudsman. The court also stressed that only the Ombudsman has the authority to prosecute government officials accused of grave offenses, free from pressure or interference from other branches of government.

“This court consistently refrains from interfering with the exercise of its powers, and respects the initiative and independence inherent in the Ombudsman,” the resolution reads.

The Sandiganbayan likewise ruled that the petition of fellow BAC member Janeses Ponce to reduce his bail had become moot and academic, as he had already posted a P270,000 bail bond for his provisional liberty in October.