By US News Agency / Asian

The Office of the Ombudsman (Ombudsman) on Monday dismissed and barred from holding government office the general manager of the Philippine National Railways (PNR) and four others in connection with the anomalous purchase of a PNR real property in 2002.

The Ombudsman found PNR general manager Jose Ma. Sarasola II and Board Directors Felipe Siapno, Primitivo Cal, Waldo Flores and Antonio Bernardo guilty of grave misconduct.

In a 50-page decision approved by Overall Deputy Ombudsman Orlando Casimiro, Sarasola and other respondents meted the penalty of dismissal from the service with all its accessory penalties.

The Ombudsman also ordered the forfeiture of the board of directors’ respective retirement benefits and their perpetual disqualification for re-employment in the government service.

The administrative charges against Chairman of the Board Jose Cortez was dismissed for having been rendered moot and academic.

Cleared of the charges were respondents Omar Roque, Rafael Mosura, Nick Fernandez, Bonaparte Roque and Cecilia Coquia.

Also exonerated of charges were Josefina Santos, Jose Vasquez, Jr. and Dionisio Ramos but they were admonished to be circumspect and cautious in the performance of the respective official functions in order to forestall the recurrence of any similar complaints in the future.

The case arose from the sale of a PNR real property located at Barangay Poblacion, Dagupan City between Sarasola on behalf of PNR and Carried Lumber through Henry Lee Chuy.

The complainants alleged in their complaint on August 2002 that the sale was negotiated and did not pass through public bidding.

It was learned that the property was sold at a low price of P2,800 per square meter as indicated in the Deed of Absolute Sale dated Jan. 24, 2002 notwithstanding it’s zonal value of P12,600 per square meter.

In 1997, the property was already valued at P4,200 per square meter as shown in a Bureau of Internal Revenue (BIR) Certification dated May 2, 2002, hence, the sale was disadvantageous to the government by approximately P106,976,800.

The complainants further claimed that despite the irregular transaction, Cortez, Sarasola, Cal, Siapno, Flores and Bernardo approved the management’s recommendation to sell the property and during the meeting, Mosura, Fernandez and Roque were allegedly present.

Graft Investigation and Prosecution Officer Mary Ayn Punzalan said that respondent Sarasola, as authorized representative of PNR, should have conducted another public bidding in 2002 to determine or attract other possible bidders considering that more than four years have lapsed between the last bidding of the property occurred in 1997.

The Ombudsman said that instead of seeking better terms for the government, Sarasola, with the aid of the Board of Directors, proposed direct negotiation for the sale of the property with Carried Lumber.

Likewise, investigators also found that the respondents did not even show that Carried Lumber participated in any of the two failed auctions nor they attempted to establish constant communication with the offerors of the bungled biddings in order to ensure that the government will get the best price from the transaction as required by the circular of the Commission on Audit (COA).

“Respondents Sarasola fixed the purchase price for the property at Php2,800 per square meter which is much lower than the floor price previously set at Php4,200 in direct contravention of the legal requirement…” the decision said.

However, respondents Cortes, Cal, Siapno, Flores and Bernardo, as members of the Board of Directors, admitted to have concurred with the proposal and authorized the PNR general manager to effect the transaction.