FORMER Palawan governor Mario Joel Reyes and provincial planning and development coordinator Samuel Madamba II are facing as many years of incarceration following their conviction on multiple counts of violation of the Anti-Graft and Corrupt Practices Act (RA 3019) by the Sandiganbayan.
The cases involve alleged fraudulent use Palawan’s P1.585 billion share in the oil and gas royalties paid by petroleum companies developing the Malampaya-Camago offshore natural gas field.
Prosecutors said the provincial government entered into 210 irregular contracts with 11 construction firms, including roads, school buildings, day care centers, and an airport project.
Among the allegations were violations of procurement laws, lack of provisions for damages in the event of delay, submission of spurious accomplishment reports, and release of payment despite incomplete or defective work on government infrastructure.
In its 625-page per curiam decision promulgated July 29, 2025, the anti-graft court’s Second Division found Reyes and Madamba guilty of 11 counts of graft and sentenced them to six to ten years imprisonment for each count, or a total of 66 to 110 years.
It likewise imposed the additional penalty of perpetual disqualification from holding public office against both accused.
The court said the two failed to comply with the requirement to post the Invitation to Apply for Eligibility and to Bid in the Philippine Government Electronic Procurement Ssystem (PhilGEPS) and on the website of the provincial government of Palawan.
Because of this, state auditors noted that many legitimate contractors failed to participate in the public bidding of government contracts so that there was only one bidder for 65 projects and only two bidders for 139 projects.
“After judicious review of evidence presented by the prosecution, the Court finds that the actions of the above mentioned public officials amount to gross inexcusable negligence,” the Sandiganbayan said.
It stressed that as provincial governor and head of the procuring entity, it was Reyes who “held the ultimate authority to approve or disapprove the recommendations made by the BAC (Bids and Awards Committee.)
The Sandiganbayan also convicted engineers of the Palawan Provincial Engineers Office of multiple counts of falsification of public documents.
They were engineers Alfredo Padua (23 counts), Renato Abrina (13 counts), Rolly Matudio (11 counts), Bernard Zambales (2 counts), Bayani Buenaventura (9 counts), Cecilia Colegio (4 counts), and Rosario Abacial (2 counts).
The defendants were meted four to eight years imprisonment and fined P5,000 for each count, with perpetual disqualification from ever working in government.
However, the court acquitted defendants provincial budget officer Luis Marcaida II, Sangguniang Panlalawigan member Rolando Bonoan Jr., and provincial legal officer Elena Vergara-Rodriguez of graft charges, citing failure of the prosecution to prove their guilt beyond reasonable doubt, together with state auditor Edwin Iglesia and senior technical audit specialist Ronelo del Socorro, both of the Commission on Audit.
Also acquitted of the same criminal offense were private contractors Fernando Tiotangco and Rebecca Tiotangco of ANILOS Trading and Construction, Bella Tiotangco of BCT Trading and Construction, Armando Lustre Jr. of AR Lustre Jr. Construction, Dennis Sandil of DC Sandil Construction and Realty Development Inc., Jesus Tan of Goldrock Construction and Development Corp., Prospero Gabayan of ICON Trading and Construction, Lorenzo Leoncio of LB Leoncio Trading and Construction, Rosanno Tagala of RC Tagala Construction, and Ulysses Consebido of Seven Digit Construction and Supplies.
