The Office of the Ombudsman (OMB) secured the conviction of a mayor of Eastern Samar charged before the Sandiganbayan for failure to divest himself of his interest in a cable television business upon his assumption to the said post.
In a 19-page Decision, the 1st Division of the SAndiganbayan found Mayor Francisco Adalim guilty beyond reasonable doubt of violation of Sec. 9 of RA 6713 (Code of Conduct and Ethical Standards for Public Officials and Employees).
The said provision requires a public official or employee to “resign from his position in any private business enterprise within 30 days from his assumption of office and/or divest himself of his shareholdings or interest within 60 days from such assumption” to avoid conflict of interest.
The case stemmed from a complaint filed by one Roberto Lim, owner of Ledemil Cable TV Services against Adalim before the OMB in November, 2002.
It appeared that Adalim and one Rolando Olog entered into an informal partnership agreement to operate a cable television business under the name Reliance CATV and Entertainment Services, Co. sometime in 1992.Under the agreement, Olog would share 20% of the capital, representing the services he rendered for the installation and facilitation of the project, while the 80% of the capital would be shouldered by Adalim.
After securing a provisional permit with the National Telecommunication Commission (NTC) in 1993, the cable business became operational. In 1996, Olog abandoned the business because the accused failed to furnish him reports on the expenses or collections.
During trial, the prosecution team led by Assistant Special Prosecutor III Janina Hidalgo was able to prove that Adalim failed to divest himself of his interest in Reliance before his election in August 1988 and before his re-election in 2001.
Moreover, the Decision stated that a conflict of interest exist between the accused’s office and his interest in Reliance. It said, “As Mayor of Taft, Eastern Samar, it was the duty of the accused to approve permits of and collect fees from businesses operating within the said municipality. xxx Before Reliance could do business in that municipality, it was under obligation to secure business permit and pay the necessary fees.” The prosecution also showed evidence that although Reliance had been operating and doing business in Taft, no fee has been paid to the said municipality.
Adalim testified that he executed a Sale of Equity with Right of Repurchase in favor of his daughter, Ma. Concepcion Adalim on April 1, 1988. However, the Anti-graft court said that the agreement does not show that the accused had completely relinquished his rights or interest in Reliance because of the reservation that he may still repurchase it “within one year after a period of three years” and because of the prohibition that his daughter “shall not sale (sell) or encumber the equity mentioned herein without prior approval of vendor within said period of three years.”
It also said that the act could not be considered a valid divestment under RA 6713 because Ma. Concepcion, being his daughter, is the accused’ first degree relative. Under the law, divestment shall be to a person or persons other than his spouse or relatives within the fourth civil degree of consanguinity or affinity.
The anti-graft court sentenced Adalim to pay a fine of P5,000, with subsidiary imprisonment in case of insolvency.##
