Tuesday, December 4, 2018

SC clears ex-Cavite Governor Maliksi, 2 others of graft charges

By Rey Panaligan

The Supreme Court (SC) has cleared former Cavite Gov. Erineo S. Maliksi and provincial accountant Doris J. Ensomo of the graft charges filed against them by the Office of the Ombudsman in 2017 in connection with alleged irregularities in the purchase of land for the LRT-1 South Extension project.

In a resolution, the SC ruled that the Ombudsman failed to demonstrate the presence of evident bad faith, gross inexcusable negligence, or manifest partiality on the part of Maliksi and Ensomo in the payment of tenants’ disturbance compensation, broker’s commission, and capital gains tax and documentary stamp tax (DST).

Also cleared of graft charges, in effect, was Cynthia S. Montesclaros, attorney-in-fact of the vendor-landowners.

While the resolution was issued Sept. 26, 2018, it was made public only yesterday through a case summary released by the SC’s public information office (PIO)

The summary stated that “the Ombudsman did not cite the specific law, regulation, or ordinance prohibiting the payment of tenants’ disturbance compensation by a provincial government and enumerating the documentation required to support such expenditure.”

“Without the applicable legal basis, the petitioners’ approval of the payment of tenants’ disturbance compensation alone is insufficient to engender a reasonable belief that the petitioners have violated Section 3(e) of R.A. No. 3019” (the Anti-Graft and Corrupt Practices Act), the PIO said quoting from the resolution.

Citing the Ombudsman’s findings, the PIO summary stated that “Cynthia S. Montesclaros, the attorney-in-fact of the vendor-landowners, received a broker’s commission when she was not a registered broker, citing R.A. No. 9646, otherwise known as the Real Estate Service Act of the Philippines (RESA), which states that only the duly licensed real estate broker shall be entitled to receive or demand a fee, commission, or compensation of any kind for any service rendered or work done in any real estate transaction.”

But the SC pointed out that RESA was enacted on June 29, 2009, while the deed of absolute sale executed between the province of Cavite and Montesclaros along with the subsequent disbursement vouchers (DV) were all dated and processed in January 2009.

“Clearly, at the time of the transaction in question, RESA was not yet in effect,” the SC said.

On the payment of capital gains tax and DST, the same summary stated that “the Ombudsman ruled that petitioners deliberately ignored the Tax Code’s provisions when they allowed the Province of Cavite to shoulder the capital gains tax and DST.”

However, the SC pointed out that unlike the tenants’ disturbance compensation and the broker’s commission, the Ombudsman did not specify whether the petitioners were guilty of evident bad faith, gross inexcusable negligence, or manifest partiality in effecting the payment of these taxes.

“The attendance of any one of the three modalities is an essential element of violation of Section 3(e) of R.A. No. 3019. Thus, without mention of any of the three modalities, the payment of taxes in this could not have given rise to a violation of Section 3(e). Be that as it may, even if the OMB (Office of the Ombudsman) specified which modality attended the payment of the taxed, the charge is still unfounded” as it stressed the basic principle of freedom to contract.

Case records showed that on Feb. 27, 2008, the Light Rail Transit Authority (LRTA) and the province of Cavite, through Maliksi, entered into a memorandum of agreement (MOA) for the identification, acquisition, and development of a relocation site for the informal settlers affected by the LRT-1 South Extension Project.

The LRTA obligated and released the initial amount of P500,000,000 to the province of Cavite to fast track the implementation of the project.

On Jan. 20, 2009, the province of Cavite, through Maliksi, entered into a deed of absolute sale with Cynthia S. Montesclaros, as the attorney-in-fact of the vendor-landowners, over 14 parcels of land for P125,488,200, net of taxes, fees, expenses, broker’s commission, tenants’ disturbance compensation, and damages.

But aside from the contract price and other expenses like surveying and documentation, the province of Cavite also paid P6,000,000 as partial payment for tenants’ disturbance compensation with Montesclaros as payee; P4,968,750 – as five percent broker’s commission to Montesclaros; P6,112,300 for tenants’ compensation to Montesclaros; and, P9,411,627 for capital gains tax and DST with the Bureau of Internal Revenue.

On March 31, 2011 the Commission on Audit (COA) disallowed the additional payments as it ruled that the purchase price of P125,488,200 was already net of taxes, fees, expenses, broker’s commission, tenants’ disturbance compensation, and damages.

Maliksi’s appeal was later denied by COA.

On Sept. 17, 2012 the Ombudsman received a complaint against Maliksi, Ensomo and the Monteclaros.

On March 10, 2017, the Ombudsman found probable cause and ordered the filing of graft cases against them. When their motion for reconsideration was denied, Maliksi and Ensomo elevated the issue to the SC which ruled in their favor.

https://news.mb.com.ph/2018/12/04/sc-clears-ex-cavite-governor-maliksi-2-others-of-graft-charges/

SC clears former Cavite Governor Maliksi of graft

The Supreme Court has cleared former Cavite Gov. Erineo S. Maliksi of graft charges arising from the alleged questionable P125-million relocation contract for informal settlers affected by the Light Rail Transit 1 Cavite (South) Extension Project.

In a 16-page extended resolution released Tuesday, the high court granted the petition filed by Maliksi and Doris J. Ensomo, provincial accountant of Cavite, reversing the March 10, 2017 and July 31, 2018 order and resolution by the Ombudsman.

The resolution reversed by the high court found probable cause to file a case for violation the Anti-Graft and Corrupt Practices Act, or Republic Act No. 3019, against them before the Sandiganbayan.

The high court said the Ombudsman gravely abused its discretion when it approved the filing of criminal charges against the petitioners.

The high court said the Ombudsman failed to demonstrate the presence of evident bad faith, gross inexcusable negligence, or manifest partiality in petitioners’ payment of the following: (a) tenants’ disturbance compensation; (b) broker’s commission and (c) capital gains tax and documentary stamp tax (DST).

“The Ombudsman did not cite the specific law, regulation, or ordinance prohibiting the payment of tenants’ disturbance compensation by a provincial government and enumerating the documentation required to support such expenditure,” the high court said.

“Without the applicable legal basis, the petitioners’ approval of the payment of tenants’ disturbance compensation alone is insufficient to engender a reasonable belief that the petitioners have violated Section 3(e) of R.A. No. 3019,” it added.

At the same time, the high court said Cynthia S. Monteclaros, the attorney-in-fact of the landowners could held liable for violation of the Real Estate Service Act of the Philippines (RESA), or Republic Act No. 9646.

Under RESA, only the duly licensed real estate broker is entitled to demand a fee, commission or compensation in real estate transactions.

The high court said the law was enacted on June 29, 2009, but the deed of absolute sale between the province of Cavite and Montesclaros was made in January 2009.

The case arose as an offshoot of the deal in February 2008 when the Light Rail Transit Authority and the Cavite provincial government entered into a memorandum of agreement for the identification, acquisition and development of a relocation site for the informal settlers affected by the LRT-1 South Extension Project.

LRT released the initial amount of P500,000 to fast-track the implementation of the project.

In January 2009, Cavite entered into a deed of absolute sale with Montesclaros over 14 parcels of land in Barangay Santiago, General Trias, Cavite measuring 209,147 square meters for a total of P125.48 million.

But the province ended up paying an additional P16 million for extra expenses.

On March 31, 2011, the Commission on Audit (COA) issued a notice of disallowance for the payments for lack of basis as the deed of absolute sale provided that the purchase price was already net of taxes, fees, expenses, brokers’ commission, tenants’ disturbance compensation and damages.

The controversy eventually prompted the corruption complaint against Maliksi. /atm

https://newsinfo.inquirer.net/1059960/sc-clears-former-cavite-governor-maliksi-of-graft

Supreme Court clears ex-Cavite gov Maliksi in LRT extension case

The Supreme Court has cleared former Cavite governor Erineo "Ayong" Maliksi of graft charges over alleged anomalies in the relocation of  informal settlers affected by the LRT-1 South Extension Project.

Finding grave abuse of discretion on the part of the Office of the Ombudsman, the Court's First Division reversed and set aside Maliksi's indictment by the anti-graft office in 2017.

The justices said that the Ombudsman failed to demonstrate the presence of evident bad faith, gross inexcusable negligence, or manifest partiality in three payments relating to the purchase of 20 hectares of land for the development of a relocation site.

In 2009, the Cavite provincial government bought 14 parcels of land in General Trias for P125.48 million, net of taxes, fees, expenses, broker's commission, tenants' disturbance compensation and damages.

Eight years later, the Ombudsman found that Maliksi and former provincial accountant Doris Ensomo approved the payment of P12.1 million in tenants' disturbance compensation without required documentation.

Prosecutors also charged the two for allegedly paying P4.9 million in broker's commission to their co-accused, Cynthia Montesclaros, an unregistered broker; and allowed the province to shoulder P9.4 million in capital gains and documentary stamp taxes stemming from the Deed of Absolute Sale when the law says these taxes should be borne by the vendor or landowner.

These additional payments, amounting to P26.49 million, were disallowed by the Commission on Audit in 2011.

However, the SC ruled that the Ombudsman "did not cite the specific law, regulation, or ordinance" that prohibits a provincial government from paying tenants' disturbance compensation and lists the required documents for such an expenditure.

"Without the applicable legal basis, the petitioners' approval of the payment of tenants' disturbance compensation alone is insufficient to engender a reasonable belief that the petitioners have violated Section 3(e) of Republic Act No. 3019," the high court said.

The justices also decided that the Ombudsman's finding of probable cause lacks facts that demonstrate "clear basis" on the part of Maliksi and Ensomo to favor Montesclaros.

Finally, the Court held that the Ombudsman's charge that the Maliksi and Ensomo ignored the Tax Code by allowing the provincial government to shoulder the capital gains and documentary stamp taxes is "unfounded." — RSJ, GMA News

https://www.gmanetwork.com/news/news/nation/677074/supreme-court-clears-ex-cavite-gov-maliksi-in-lrt-extension-case/story/

SC clears ex-Cavite guv Maliksi in LRT relocation mess

The Supreme Court (SC) cleared former Cavite Governor Erineo S. Maliksi from corruption charges arising from alleged anomalies in a P125-million relocation contract for informal settlers affected by the planned extension of the southern leg of the Light Rail Transit (LRT).

In a 16-page resolution dated Sept. 26 and released to media Tuesday, the SC granted the petition filed by Maliksi and private individual Cynthia S. Montesclaros and reversed the Ombudsman's ruling against the two.

"The Ombudsman committed grave abuse of discretion in finding the existence of evident bad faith, gross inexcusable negligence and manifest partiality," the SC said in its resolution.

The case arose as an offshoot of the deal in February 2008 when the Light Rail Transit Authority and the Cavite provincial government entered into a Memorandum of Agreement for the identification, acquisition and development of a relocation site for the informal settlers affected by the LRT-1 South Extension Project.

LRT obligated and released the initial amount of PHP500,000 to fast-track the implementation of the project.

In January 2009, Cavite entered into a deed of absolute sale with Montesclaros over 14 parcels of land in Barangay Santiago, General Trias, Cavite measuring 209,147 square meters for a total of PHP125.48 million.

The province, however, ended paying up additional PHP16 million for additional expenses.

On March 31, 2011, the Commission on Audit (COA) issued a notice of disallowance for the payments for lack of basis as the deed of absolute sale provided that the purchase price was already net of taxes, fees, expenses, brokers' commission, tenants' disturbance compensation and damages.

The controversy eventually prompted the corruption complaint against Maliksi. (PNA)

http://www.pna.gov.ph/articles/1055713

SC clears ex-governor Ayong Maliksi in P26M Cavite LRT case

The Ombudsman indictment against the former governor is set aside

The Supreme Court has cleared former Cavite governor Erineo “Ayong” Maliksi of graft charges after the First Division reversed his indictment by then Ombudsman Conchita Carpio Morales.

Morales had indicted Maliksi of graft in 2017, the formal charge filed before the anti-graft court Sandiganbayan in February 2018, for allegedly violating multiple laws in the payment of landowners whose properties were going to be affected by the extension of the LRT 1 South Extension Project.

“In a 16-page extended Resolution, the Court’s First Division reversed and set aside the Ombudsman’s March 10, 2017 Resolution and July 31, 2017 Order finding probable cause against them for violation of Section 3(e) of RA 3019 and directing the filing of an Information against them with the Sandiganbayan,” said the Supreme Court in an announcement on Tuesday, December 4.

In the 2017 audit report of the the Light Rail Transit Authority (LRTA), procurement lapses were still found in the contracts for the housing segment of the extension project.

Maliksi case

Morales charged Maliksi for allegedly colluding with former provincial accountant Doris Ensomo and private respondent Cynthia Montesclaros to secure P26 million worth of payments from the provincial government.

Cavite, then under Maliksi, was granted P500 million to pay the almost 2,000 families who would be affected by the extension project.

The province of Cavite and Montesclaros – as the landowners’ lawyer – entered into a Deed of Sale for the purchase of 14 parcels of land for P125.5 million. But on top of that, the provincial government paid another P26.5 million broken down as follows:


  • P6 million for tenants’ disturbance compensation with Montesclaros as payee
  • P4.9 million for broker’s commission to Montesclaros
  • P6.1 million for tenants’ compensation to Montesclaros
  • P9.4 millon for capital gains tax with the Bureau of Internal Revenue as payee


The Commission on Audit (COA) disallowed the P26.5 million additional payment in 2011, which led to the Ombudsman's investigation.

The Supreme Court said Ombudsman prosecutors were not able to name a specific law, regulation, or ordinance that was violated when the provincial government paid the disturbance compensation.

“Without the applicable legal basis, the petitioners’ approval of the payment of tenants’ disturbance compensation alone is insufficient to engender a reasonable belief that the petitioners have violated Section 3(e) of RA No. 3019,” the Supreme Court said.

The Office of the Ombudsman said the officials ignored the tax code when they allowed the provincial government to shoulder the capital gains tax, but the Supreme Court said ”the charge is unfounded.”

https://www.rappler.com/nation/218186-supreme-court-clear-ayong-maliksi-cavite-lrt-graft-case

House passes bill giving gov’t emergency powers in traffic crisis

By Ben Rosario

Caught in legislative traffic jam for nearly three years, the bill granting government emergency powers to address the traffic crisis that has gripped the country’s urban centers was finally approved on final reading by the House of Representatives.

Passed following after receiving 188 affirmative votes, House Bill 6425 or the “Traffic Crisis Act of 2017. Makiisa, Makisama, Magkaisa” proposes to adopt “responsive, effective and comprehensive measures” that will solve the crisis through various immediate solutions that include the putting up of mass transportation in Metro Manila, Metro Cebu and Metro Davao.

Eight congressmen present during rthe Monday session registered “nay” votes.

The bill consolidates 14 bills and one resolution that were endorsed by the Duterte administration. Among the authors of the legislative measures were key former and current House leaders, including Speaker Gloria Macapagal-Arroyo (PDP-Laban, Pampanga); former Speaker Pantaleon Alvarez (PDP-Laban, Davao del Norte); Minority Leader Danilo Suarez (Lakas-CMD, Quezon); Majority Leader Rolando Andaya (PDP-Laban, Camarines Sur); Reps. Rodolfo Farinas (PDP-Laban, Ilocos Norte); Winston Castelo (PDP-Laban, Quezon City); Federico Sandoval (PDP-Laban, Navotas); and Gus Tambunting (PDP-Laban, Paranaque City).

It took the Lower House nearly three years to take final action on the measure which includes House Bill 03 that was filed even before the 17th Congress was formally opened in July 2016.

President Rodrigo Duterte had previously moved for the immediate approval of the measure but had apparently changed his mind for fear that its passage would trigger massive corruption.

The bill proposes to harmonize all traffic rules, regulations, ordinances and other issuance in the covered metropolitan areas. It will also reform, modernize and streamline the mass transpiration systems.

HB 6425 designates the Secretary of the Department of Transportation as the de officio traffic chief who will be clothed with an expansive authority aimed at immediately putting an end to land transport crisis.

He will be clothed with power of control and supervision over all land transportation agencies, including the Metro Manila Development Authority, the Council headed by a Cebu Coordinator and the Davao Administrator.

It provides for a three-year period of effectivity unless sooner withdrawn by Congress.

Under the bill, completion of a route rationalization for public utility vehicles will have to be realized within eight months upon its enactment.

Aside from other powers aimed at addressing the traffic crisis, the traffic chief will enjoy the power to revoke or modify PUV franchises to conform to the viable capacity of a certain route. He will also have the authority to restrict the eligibility for PUV franchises.

The traffic chief may also take over PUV frnachise operation as well as restore it.

The legislative proposal provides for the suspension of the power of local government units to issue franchises for tricycles, padyak and other PUV transport units not covered by the Land Transportation and Franchising Board.

The application of the Local Government Code providing for prior consultation on traffic related programs and that of the Labor Code will be suspended upon approval of the measure.

Non-compliance to the provisions of the measure may be penalized as provided unde Republic Act 9184 or the anti-graft law.

The bill also creates Special Traffic Crisis Courts that will have exclusive jurisdiction to hear and resolve all actions emanating from the implementation of the Traffic Crisis Act.

https://news.mb.com.ph/2018/12/04/house-passes-bill-giving-govt-emergency-powers-in-traffic-crisis/

PNR extends service to Malabon

The Department of Transportation and the state-run Philippine National Railways began operating a train service that would ferry commuters from Malabon City.

Transport officials on Monday launched the Malabon City-Taguig City route with the opening of the PNR Governor Pascual station.

PNR will have eight trips from Governor Pascual station in Malabon to FTI station in Taguig and vice versa daily. There will also be four daily trips from Tutuban in Manila to Governor Pascual.

The travel time in the new Malabon-Taguig is expected to span 58 minutes, DOTr said.

The fare for an air-conditioned coach would cost P25. Passengers would have to pay P20 for a non-air-conditioned coach.

Transport Secretary Arthur Tugade said the service aims to ease the burden of workers from the cities of Caloocan, Malabon, Navotas and Valenzuela.

The new route is part of the Metro North Commuter service. — Gaea Katreena Cabico

https://www.philstar.com/nation/2018/12/04/1874137/pnr-extends-service-malabon

More powers won’t solve traffic problem

Lawmakers passed House Bill 6425, or the proposed Traffic and Congestion Crisis Act, last week. The measure does not give the President emergency powers once enacted into law, but it would pave the way for the creation of a single traffic authority headed by an all-powerful traffic chief who will be appointed by the President.

Serving as the alter ego of the President, the traffic chief would have power of supervision over all local government units (LGUs) in metropolitan areas —Metro Manila, Davao and Metro Cebu—with the full power and authority to streamline the management of traffic and transportation and control road use in these areas.

The traffic chief shall have the power of supervision and control over the Metropolitan Manila Development Authority; Cebu Coordinating Council, as created under the bill; Philippine National Police-Traffic Management Group; Land Transportation Office; Land Transportation Franchising and Regulatory Board; Road Board; all other executive agencies, bureaus and offices with roles pertaining to land transportation regulation; and the Davao traffic administrator. He or she shall also formulate, coordinate, and monitor policies, standards, programs and projects to rationalize existing public transport operations, infrastructure requirements, the use of thoroughfares, safe movement of persons and goods, the administration and implementation of all traffic enforcement operations, traffic engineering services and traffic education programs.

That, indeed, is a lot of power. And it’s not emergency or temporary power. We doubt if centralizing all the power in one person is even necessary. Like Lito Atienza, the senior deputy minority leader of the House of Representatives, we also ask how this could address the real causes of our traffic problems.

“How will giving authorities more power help solve the traffic mess in Metro Manila, Metro Cebu and Davao, when the root causes of our traffic problem—corruption, mismanagement and incompetence—are not being addressed? It is like prescribing medicine that would only treat the symptoms, but not the virus that causes the illness,” Atienza said.

“The solutions being proposed in this piece of legislation are not the answers to our problem.  We do not need more laws and powers. All the laws are already in place, but the government is not enforcing the law. What we need is stricter and honest-to-goodness enforcement of existing laws covering traffic management, as well as punishing erring traffic officials especially enforcers on the streets,” Atienza said during his interpellation of the bill’s sponsor, Catanduanes Rep. Cesar Sarmiento.

Again, we agree.

As we keep saying, road discipline and traffic rules are the first signs of a civilized society while their absence or wanton disregard for them depicts a pathetic, backward society. We need to bring back road discipline. We can solve our traffic problems in Metro Manila and other urban centers through relatively cheaper, ingenious ways and with political will. But we need rules. We can’t operate without rules, and rules must be strictly implemented and followed.

Simply obeying traffic laws, for instance, is sometimes overlooked but it often prevents both chokepoints and accidents on our roads.

Take, for instance, the Buendia and Osmeña Highway intersection, which is one of the busiest intersections in Makati, and just about a hundred meters away from BusinessMirror offices. It is often jammed because authorities turn off the traffic lights at this intersection instead of making sure motorists follow them. Sadly, this is replicated in many busy intersections in the metropolis. Many times traffic lights are turned off with no police minding these intersections, resulting in bedlam.

When everyone is following rules, the road is more organized, more efficient and most important safer. And yet why is it that authorities themselves are the first ones who disregard traffic lights and other rules, when they are the ones who should be enforcing them and preventing traffic violations?

We know this is just one simple example, but obviously you do not need an all-powerful traffic chief to have motorists follow simple traffic rules, such as obeying traffic lights.

And turning on those traffic lights is a good start.

https://businessmirror.com.ph/more-powers-wont-solve-traffic-problem/