Ex-Palawan gov Reyes found guilty in Malampaya fund mess
The Sandiganbayan convicted former Palawan Gov. Mario Joel Reyes and several other provincial government officials and contractors for graft over fraudulent infrastructure projects funded by the Malampaya Fund, according to a 625-page decision by the antigraft court on Tuesday.
The antigraft court, in a decision penned by Presiding Justice Geraldine Faith Econg, found Reyes and his coaccused—former quality control division chief Alfredo Padua, engineers Rolly Matudio and Bayani Buenaventura, and several others—guilty in selected criminal cases for violating Section 3(e) of the Anti-Graft and Corrupt Practices Act.
The decision, covering 159 criminal charges, answered alleged graft and falsification of public documents related to at least 39 infrastructure projects in Palawan funded by the province’s share of the multibillion-peso Malampaya natural gas revenues.
Reyes was convicted in one case for approving falsified documents and facilitating payment for a project falsely reported as fully completed.
Reyes was sentenced to a prison term of six to 10 years.
However, he was acquitted in other cases, including those involving the construction of a generator house and a road segment after the court found no direct evidence linking him to falsification.
209 contracts
The case started in March 2017 when Reyes and 41 others were charged in the Sandiganbayan for anomalies in 209 contracts funded by P1.53 billion in royalties from the Malampaya gas field in 2008 and 2009.
While Reyes was not involved in most of the 159 charges, which are related to the provincial engineering office’s alleged offenses regarding 39 individual contracts, he was charged with 14 counts of violating Section 3(e) of the antigraft law for allegedly causing undue injury to the government, and 22 counts under Section 3(g) for entering into disadvantageous contracts.
The Palawan government under Reyes got hold of royalties from Malampaya following the issuance of Executive Order No. 683 in 2007, an interim agreement that granted Palawan half its claim of the 40-percent share of the proceeds amid a dispute.
Most of the accused surrendered and posted bail in 2017.
Widespread irregularities
The Commission on Audit (COA) flagged widespread irregularities in the reported accomplishments of the projects, with some falsely marked as “100-percent complete.”
While the court dismissed many of the 159 charges against the accused due to insufficient evidence or lack of clear criminal intent, it handed down convictions in key cases where project discrepancies were substantiated by audit reports and corroborated by testimonies and falsified documents.
Several cases were dismissed due to the deaths of accused provincial general services officer Ferdinand Dilig, provincial engineer Charlie Factor, provincial administrator Romeo Seratubias, Rodolfo Gallardo of Rodcel Construction, Tederico Tiotangco of BCT Trading and Construction, and assistant provincial engineer Manuel Cabiguen before final judgment.
Meanwhile, cases against Elizabeth Tisara of DJ Builders Corp., resident engineer Darrell Elivera, Efren Tabangay of ED Tabangay Construction, and provincial treasurer Teofilo Palanca Jr. were archived as they remained at large.
Padua and Matudio were convicted in multiple cases where the court cited their roles in signing or approving falsified statements of work accomplished and inspection reports, resulting in huge overpayments.
No accomplishment
For example, a project reported to have cost P45,078,075.39 was found by the COA to have noncompliant carpentry works and missing materials.
The Sandiganbayan flagged recurring violations of procurement rules, including failure to publish bidding notices on the Philippine Government Electronic Procurement System, incomplete project documentation, and questionable contract awards.
The court noted “manifest partiality when accused Reyes, as HoPE (Head of the Procuring Entity), improperly evaluated the bid proposals, leading to the award of numerous or overlapping contracts to a single contractor with one set of key personnel.”
Link to Ortega slay
The exposé of the alleged irregularities supposedly led to the January 2011 murder of environmentalist broadcaster Gerry Ortega, a vocal critic of Reyes’ administration.
Ortega was shot dead in Puerto Princesa City, the provincial capital. The gunman, Marlon Recamata, was arrested later and confessed, tagging Rodolfo Edrad Jr.—Reyes’ former close-in security escort—as the person who hired him. Edrad turned state witness and implicated Reyes as the alleged mastermind.
In 2012, Reyes fled the country with his brother, former Coron Mayor Mario Reyes Jr. They were arrested in Thailand in 2015 for overstaying.
2024 surrender
After three years in detention, in January 2018, Reyes was released after the Court of Appeals (CA) upheld his petition questioning the merits of the case. But the CA reversed its decision on Nov. 28, 2019.
In a March 29, 2023, resolution, the Supreme Court ordered the Regional Trial Court (RTC) of Puerto Princesa City to issue an arrest warrant on Reyes and resume his trial. He went into hiding after Judge Angelo Arizala of Palawan RTC issued the warrant.
In September 2024, Reyes surrendered to the National Bureau of Investigation while reportedly undergoing treatment in a Metro Manila hospital. At that time, he remained under hospital arrest.
The Department of Justice then said it would revive the Ortega murder case, with the former governor back in custody. —WITH REPORTS FROM INQUIRER RESEARCH
Sources: Inquirer Archives, pna.gov.ph
