Pampanga town mayor pleads not guilty to graft, extortion charges

San Simon, Pampanga Mayor Abundio “JP” Punsalan Jr. pleaded not guilty to graft and extortion charges during his arraignment on Wednesday before the Sandiganbayan’s Seventh Division.
He appeared in court nearly two months after he was entrapped by authorities at a restaurant in Clark Freeport while allegedly receiving a bag containing around P30 million in cash.
The entrapment, which was conducted by the National Bureau of Investigation’s intelligence division on Aug. 5, led to Punsalan’s arrest and the disarming of his six bodyguards.
A Sandiganbayan order dated Sept. 9 showed that Punsalan surrendered and posted cash bonds of P90,000 for the case filed against him. He is charged with violating Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act, and Article 293 of the Revised Penal Code (robbery by means of extortion).
Money demand, threat
According to the complaint filed by RealSteel Corp., Punsalan demanded P80 million in exchange for not overturning Municipal Ordinance No. 24-0025, which granted tax incentives to the San Simon-based company which manufactures steel bars.
The demand was allegedly accompanied by threats that Real Steel’s incentives would be revoked if payment was not made.
The company also filed an urgent motion before the Office of the Ombudsman for Punsalan’s suspension in connection with an administrative case for grave misconduct and serious dishonesty. The motion remains pending.
RealSteel likewise lodged a separate administrative case against the mayor before the Pampanga provincial board.
Punsalan, however, returned to work early last month after a Muntinlupa court granted the petition for habeas corpus filed by his lawyer and ordered the NBI to release him, along with his security.
According to the court, the NBI failed to provide sufficient legal basis which would allow it to maintain custody of the mayor and his companions beyond 36 hours.
“Consequently, the lapse of the mandatory 36-hour period without the filing of charges in court or the issuance of a judicial order renders their continued confinement unlawful,” the court said.