The Office of the Ombudsman has affirmed the finding of probable cause to charge Pagsanjan, Laguna Mayor Jeorge Ejercito Estregan and seven municipal councilors with violation of Section 3 (e) of the Anti-Graft and Corrupt Practices Act (Republic Act No. 3019) for the insurance service agreement entered into by the municipality with First Rapids Care Ventures (FRCV).
Also included in the charge sheet are Councilors Crisostomo Vilar, Arlyn Lazaro-Torres, Terryl Gamit-Talabong, Kalahi Rabago, Erwin Sacluti, Gener Dimaranan, Ronaldo Sablan, and Marilyn Bruel, proprietor of FRCV.
In its 15-page Resolution, complainant United Boatmen Association of Pagsanjan narrated that on 08 September 2008, a municipal ordinance was passed by the Sangguniang Bayan (SB) authorizing Estregan to enter into a contract with a competent and qualified entity to provide Accident Protection and Assistance to all tourists and boatmen plying the Pagsanjan Gorge Tourist Zone. Two weeks later, on 22 September 2008, Bruel wrote Estregan offering its services to provide accident, death and disability insurance, and accidental and medical reimbursement for tourists and boatmen. In October 2008, a memorandum of agreement was entered into providing that FRCV would receive P43.00 for every P1,000 paid by the tourist. Documents showed from October 2009 to May 2009, the insurance company received a total P3.07million as its share of the tourist payments for the boat rides.
The Office of the Ombudsman found that FRCV was not licensed and did not possess a certificate of authority from the Insurance Commission to engage in the insurance business. In addition, the Office highlighted that FRCV had no known experience and proven technical, legal, and financial capability to render the service.
According to Ombudsman Conchita Carpio Morales, “despite being disqualified and without the requisite public bidding, respondent Estregan proceeded to enter into and execute the MOA with FRCV” and “worst respondent SB immediately ratified and approved the MOA inspite of its obvious irregularities and flaws, and even after FRCV failed to put up the required performance bond within the specified period.”
She added that the municipal ordinance “paved the way for the shortening of the process which allowed respondent Estregan to make direct negotiations with FRCV for a contract which otherwise must pass the procurement process.” ###