FOR releasing payment to a public works contractor for a suspended road project, former Tulunan, North Cotabato mayor Lani Cadolada is now facing six to 10 years in jail and perpetual disqualification from holding public office after she was convicted by the Sandiganbayan of violating the Anti-Graft and Corrupt Practices Act (RA 3019).
In a decision dated September 2, 2025, the Sandiganbayan Fourth Division held that Candolada was guilty of gross and inexcusable negligence when she approved the release of the mobilization fee to contractor Jargon Construction and Supply in 2015 even if the planned Rehabilitation of Paraiso-Daig farm-to-market-road (FMR) project had earlier been shelved due to budget and specification adjustments.
“Accused Candolada should have withheld the processing of the mobilization fee as no construction work was permitted during the suspension period, making the supposed mobilization of resources unreasonable,” the court said.
Associate Justice Lorifel Lacap Pahimna penned the 39-page ruling with Associate Justices Michael Frederick Musngi and J. Ermin Ernest Louie Miguel concurring.
Based on the information filed by the Office of the Ombudsman on April 24, 2023, the former mayor was accused of favoring Jargon Construction by greenlighting the FMR project despite the suspension as early as January 29, 2015, thereby causing damage to the government.
State auditor Jocelyn Visco, testifying for the prosecution, pointed out that the release of the fee to the contractor was illegal since, in effect, there was no project to speak of.
She said there was a documented 17.20 percent accomplishment on the FMR project, but this was undertaken by Jargon even before the issuance of a Notice to Proceed and release of the mobilization fee.
In convicting Candolada, the court noted that eventually the municipal government of Tulunan terminated Jargon’s contract after determining that it was not technically and financially eligible to undertake the road project.
“Any work undertaken by Jargon before its receipt of the notice to proceed is considered part of the contractor’s own risk. In other words, Jargon bears full responsibility for any losses arising from commencing work prematurely,” the Sandiganbayan pointed out.
