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The Office of the Ombudsman found probable cause to indict former Misamis Oriental Governor, now Cagayan de Oro City Mayor, Oscar Moreno, including former officials Acting Provincial Accountant Divina Bade, Acting Provincial Budget Officer Elmer Wabe, Provincial Administrator Patrick Gabutina and Assistant Provincial Engineer Rolando Pacuribot, before the Sandiganbayan.

In a Resolution approved on 23 February 2018, Moreno, et al. were ordered charged with one count of violation Section 3(e) of the Anti-Graft and Corrupt Practices Act (Republic Act No. 3019).

Records show that from 02 October 2009 to 02 October 2010, respondents approved without undergoing any public bidding, the rental of one unit of excavator from Equiprent Corporation (Equiprent) amounting to P2,963,520.00. Respondents instead resorted to Negotiated Procurement as an alternative method of procurement and cited the typhoon and weather disturbances that hit the province from 2009 to 2012.

Several procurement irregularities were also noted such as the contractor’s non-registration with the Philippine Government Electronic Procurement System and the non-submission of documents required by the Government Procurement Reform Act.

Upon audit, the Commission on Audit (COA) issued a Notice of Suspension (NS) No. 2014-006-101 (2010) dated 06 June 2014 naming respondents as the persons liable for “the deficiencies in the required transaction processes and the lack of the necessary supporting documents.” The COA noted that the NS has already ripened into a disallowance per Notice of Disallowance No. 2014-018-101 (10)-SplAudit dated 10 November 2014.

“[T]heir acts constitute evident bad faith and they should be held liable for giving unwarranted benefits, advantage or preference to Equiprent,” stated the Resolution.

Section 3(e) of R.A. No. 3019 prohibits public officers from causing any undue injury to any party, including the government, or giving any private party any unwarranted benefit, advantage or preference in the discharge of official function through manifest partiality, evident bad faith or gross inexcusable negligence. ###