Davao Oriental Mayor Faces Graft Raps

The Office of the Ombudsman ordered the filing of criminal charges for violation of Section 3 (b) of Republic Act No. 3019 against former mayor William Duma-an of Caraga, Davao Oriental for requesting and receiving monetary benefit in exchange for entering into a consultancy contract with RR Summit Consultants, Inc. (RR Summit).

Records disclosed that in 2010, Duma-an visited the residence of Roseller Macayra, Chief Executive Officer of RR Summit, to discuss its three percent service fee as consultant on the municipality’s P110,000,000.00 loan facility for the construction of the Caraga public market, terminal and commercial complex project.

After assuring RR Summit that the consultancy project will push through, Duma-an requested several loans amounting to P2,000,000.00 which was deposited in his personal bank account. According to Duma-an, he obtained the loan “so he could pay the debts incurred in the May 2010 elections,” and was formalized thru a notarized contract with loan confirmation and promissory note. Despite demand, Duma-an failed to make any payment to RR Summit.

In finding probable cause against Duma-an, the Resolution cited that “in asking and receiving a loan of P2,000,000.00 from complainant, he secured for himself a personal benefit, which he was able to obtain by dangling the guarantee of releasing the 3% service fee stated in the consultancy agreement between complainant and the municipality.”

Section 3(b) of R.A. 3019 prohibits any public official from requesting and/or receiving any gift, present, share, percentage or benefit in connection with a contract or transaction with the government wherein the public official has the right to intervene in his official capacity under the law.

Source: www.ombudsman.gov.ph