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Plunder Charge vs. Vicente Dongkoy Emano, et. al. Part 7

71. THAT because of the patently deliberate and intentional establishment of this ONE MONOPOLY of EMANO-PADAYON PILIPINO-UKC BUILDERS, INC. on all projects not just over P50 million each but ranging from P100 million to P400 million, the People of Cagayan de Oro and its City Government are now both suffering from a series of injuries that continues up to date both socially and financially from the respondents series of conspired acts while Emano-UKC Builders, Inc. and co-conspirators continue to rake in ill-gotten wealth and plunder the City’s Coffers;

EMANO-PADAYON PILIPINO-UKC BUILDERS, INC Flagship Projects	Among the ILL-GOTTEN WEALTH plundered by the Emano-Padayon Pilipino-Ukc Builders, Inc. from the City’s Coffers	Among the ‘CONTINUING INJURIES’ now being suffered/burdened upon the Filipinos of Cagayan de Oro City and the entire Republic of the Philippines
1. West-Bound Terminal & Public Market	27.) The CONTRACT FOR PUBLIC WORKS of the Westbound Terminal & Public Market is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[5] 28.) OVERWHELMING PROFIT as project is tremendously overprized and not commensurate to actual cost. 29.) INCREASE IN MARKET VALUE of UKC Builders, Inc. land properties directly surrounding the Bulua Public Market. 30.) MORE PROFIT from expropriation of residential land properties surrounding the area.	1.) The people NOW pays/subsidizes around 85% to 90% of the total Land Bank loan for 15 years at 11% interest per annum or P38,132,503.97 OR P38 million in interest alone yearly OR a total of P572 million for the next 15 years as the project is practically a “white elephant” considering that only around 15% to 10% of the project is actually earning money due to: (a.) high market stall rental rates, (b.) inaccessibility to the public and (c.) there are already EXISTING four (4) huge public markets Cogon, Carmen, Puerto and Agora and three (3) huge malls Limketkai, Ororama MegaCenter and Gaisano Mall and City, four (4) department stores Ororama Cogon Branch, Ororama Carmen Branch, Gaisano Cogon Branch and Carmen Carmen Branch and a mini-market at Bulua itself along the national highway adjacent to the Bulua over-pass. 2.)The land property, the public market, the PUJ Terminal, the PUB Terminal and the Administration Building are now registered as mortgaged to Land Bank of the Philippines as additional collaterals aside from the Deed of Assignment of the Internal Revenue Allotment (IRA) which is no longer sufficient for the granting of the P250 million loan for the construction of the 5th Kagay-anon Bridge, another EMANO-PADAYON PILIPINO-UKC Builders, Inc. project.
2. South Diversion Road & Bridge ( Taguanao-Balulang Bridge )	31.) The CONTRACT FOR PUBLIC WORKS of the South Diversion Road & Bridge ( Taguanao-Balulang Bridge )is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[6] 32.) OVERWHELMING PROFIT as project is tremendously overprized and not commensurate to actual cost. 33.) MORE PROFIT from expropriation of residential land properties surrounding the area.	3.) The People NOW pays for the Land Bank loan for 15 years at 12% interest OR P48,000,000.00 or P48 million per year in interest alone or P720,000,000 or P750 million in the next 15 years for a project that is practically considered as another “white elephant” because of its (a) inaccessibility from the center of the city, (b) circuitous route and (c) desertedness. 4.) Destruction of the priceless Cagayan de Oro archeological heritage – the Huluga Cave and Archeological Site;
3. Redevelopment of Carmen Public Market	34.) The 20-years Build-Operate-Transfer (BOT) CONTRACT for the Redevelopment of Carmen Public Market is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[7] 35.) The DEMOLISHED BUILDING MATERIALS before the implementation of the 20-year BOT project; 36.) The BUILDING/ STRUCTURE of the Carmen Public Market itself is now owned by the Emano-PaDayon Pilipino-UKC Builders, Inc. until the next 20-years; 37.) A TOTALLY RISK-FREE BOT CONTRACT PROVISION that the 80%-20% repayment scheme or revenue sharing scheme be based on PROJECTED RENTAL COLLECTION/ INCOME to be turned over by the City Government to EMANO-PADAYON PILIPINO-UKC Builders, Inc. and not on ACTUAL RENTAL COLLECTION/ INCOME serving as an INSURANCE OR CONSTANT SOURCE OF INCOME for Emano and his co-conspirators for the next 20 years; 38.) OVERWHELMING PROFIT as project is tremendously overprized and not commensurate to actual cost.	5.) The People of Cagayan de Oro and the City Government are the ones paying for any risk that the EMANO-PADAYON PILIPINO-UKC Builders, Inc. incur in this supposed BOT contract as it contains what the Commission on Audit (COA) as “unreasonable” provisions on the 80%-20% repayment scheme or revenue sharing approved and revised by the Emano-PaDayon Pilipino administration; 6.) In the COA Annual Audit Report 2006, the auditors reported that the City Government has shelled out P39 million for both the Carmen and Cogon Public Markets under the EMANO-PADAYO PILIPINO-UKC Builders, Inc. management. The COA described these BOT Contracts as “disadvantageous to the coffers of the City Government; 7.) Hundreds of vendors are now displaced and those who are left are paying stall rental rates that are set higher than the local malls and department stores per square meter in a daily basis as this is pursuant to the dictates of the EMANO-PADAYON PILIPINO- UKC Builders, Inc.;
4. Redevelopment of Cogon Public Market	39.) The 25-years Build-Operate-Transfer (BOT) CONTRACT for the Redevelopment of Cogon Public Market is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[8] 40.) The DEMOLISHED BUILDING MATERIALS before the implementation of the 25-year BOT project; 41.) The BUILDING/ STRUCTURE of the Cogon Public Market itself is now owned by the Emano-PaDayon Pilipino-UKC Builders, Inc. until the next 25-years; 42.) A TOTALLY RISK-FREE BOT CONTRACT PROVISION that the 80%-20% repayment scheme or revenue sharing scheme be based on PROJECTED RENTAL COLLECTION/ INCOME to be turned over by the City Government to EMANO-PADAYON PILIPINO-UKC Builders, Inc. and not on ACTUAL RENTAL COLLECTION/ INCOME serving as an INSURANCE OR CONSTANT SOURCE OF INCOME for Emano and his co-conspirators for the next 25 years; 17.) OVERWHELMING PROFIT as project is tremendously overprized and not commensurate to actual cost.	8.) The People of Cagayan de Oro and the City Government are the ones paying for any risk that the EMANO-PADAYON PILIPINO-UKC Builders, Inc. incur in this supposed BOT contract as it contains what the Commission on Audit (COA) as “unreasonable” provisions on the 80%-20% repayment scheme or revenue sharing approved and revised by the Emano-PaDayon Pilipino administration; 9.) In the COA Annual Audit Report 2006, the auditors reported that the City Government has shelled out P39 million for both the Carmen and Cogon Public Markets under the EMANO-PADAYO PILIPINO-UKC Builders, Inc. management. The COA described these BOT Contracts as “disadvantageous to the coffers of the City Government; 10.) Hundreds of vendors are now displaced and those who are left are paying stall rental rates that are set higher than the local malls and department stores per square meter in a daily basis as this is pursuant to the dictates of the EMANO-PADAYON PILIPINO- UKC Builders, Inc.; 11.) One of the respondents City Councilor Reynaldo Advincula established his own stalls on the third floor of the Cogon Public Market;
5. Kagay-an 5th Bridge	18.) The CONTRACT FOR PUBLIC WORKS of the South Diversion Road & Bridge ( Taguanao-Balulang Bridge )is per se a REAL PROPERTY as defined by the Civil Code, as thus, a wealth in itself.[9]	12.) The people NOW pays the Land Bank loan for 15 years at 12% interest per annum or P30,000,000.00OR P30 million in interest alone yearly OR a total of P 450,000,000 or P450 million for the next 15 years:

72. THAT as a result of this pattern of overt or criminal acts and the looting of the coffers of the City Government of Cagayan de Oro, the following almost P1 billion long-term liabilities with huge interests are now being rammed down the throats of the Filipino People of the Republic of the Philippines, specifically the People of Cagayan de Oro for the three anomalous flagship projects of the Emano Administration (See Annex M-2):

Creditor	UKC Builders, Inc. Project	Amount	Term of Loan (Period & Interest)
Land Bank of the Philippines	West-Bound Terminal and Public Market	P346,659,127.08	15 years at 11% interest
Land Bank of the Philippines	South Diversion Road and Bridge	P400,000,000.00	15 years at 12% interest
Land Bank of the Philippines	Kagay-an 5th Bridge	P250,000,000.00	15 years at 12% interest
TOTAL		P996,659,127.08

73. THAT as a result of this pattern of overt or criminal acts rendering of public service is now substantially affected and will continue to affect the People of Cagayan de Oro considering that the 2008 Budget for Debt Servicing alone has now amounted to a gargantuan 15% of the total 2008 Annual Budget Ordinance thus sacrificing the budget for Health, Nutrition & Population Control which is only at 12% of the entire 2008 Budget and now practically equal to the 2008 Budget for Social Security Services & Welfare also set at 15%.

74. THAT as a result of this pattern of overt or criminal acts of the two Build-Operate-Transfer (BOT) contracts for the P118 million Redevelopment of the Carmen Public Market and the P252 million Redevelopment of the Cogon Public Market has raised the stall rental fees for market vendors to virtually confiscatory levels resulting to either their immediate ouster from their old stalls depriving them of their only means of livelihood and thus affecting the vibrancy of the local economy while other market vendors who insist on staying have to sacrifice their CHILDREN’S EDUCATIONAL NEEDS and the latter and this city and country’s future as well among others.

75. THAT as a result of this pattern of overt or criminal acts of both BOT contracts for the Carmen and Cogon Public Market redevelopment projects, the City Government of Cagayan de Oro under the respondent Emano Administration will be repaying UKC Builders, Inc. an overwhelming total of P1,411,000,162.60 or P1.4 billion as discovered by the COA in their Annual Audit Report 2006 (See Annex Y-2). This despite how the total amount for both Carmen and Cogon Public Market redevelopment project is only a meager P370,494,007.00 or P371 million only or a difference of P1,040,506,154.99 or an incredibly unreasonable P1 BILLION PROFIT for UKC Builders, Inc.;

UKC Builders’ Project	80% Revenue Share of Proponent per Annum	Total Revenue Share after Full Payment
CARMEN Market (Ground Floor with the PUJ Terminal)	P12,436,408.48	P248,728,169.60
Cogon Market (Ground and Second Floor)	P46,490,879.72	P1,162,271,993.00
GRAND TOTAL	P58,927,288.20	P1,411,000,162.60

4. Redevelopment of Carmen Public Market	P118,006,529.81	UKC Builders, Inc.	Emano Administration
5. Redevelopment of Cogon Public Market	P252,487,477.20	UKC Builders, Inc.	Emano Administration
GRAND TOTAL	P370,494,007.00

Project	Project Actual Cost	Revenue Share after Full Payment	UKC Builders, Inc. PROFIT
Redevelopment of Carmen Public Market	P118,006,529.81	P248,728,169.60	P130,721,639.19
Redevelopment of Cogon Public Market	P252,487,477.20	P1,162,271,993.00	P909,784,515.80
GRAND TOTAL	P370,494,007.00	P1,411,000,162.60	P1,040,506,154.99

Plunder Charge vs. Vicente Dongkoy Emano, et. al. Part 8

THAT as a result of this pattern of overt or criminal acts the City Government of Cagayan de Oro, as per COA Annual Audit Report 2006 revealed, has paid from its General Funds the Excess from the Actual Collections to make sure that the 80% expected gross monthly income is met during the past two years of its operations. This include P9,474,394.31 for the BOT contract covering the Carmen Public Market for January 2005 to November 2006 (See Annex Y-3) and P29,121,605.26 for the BOT contract covering the Cogon Public Market for July 2005 to November 2006 (See Annex Y-4) or a total of P38,595,999.57 or a total of P40 million for the past 2 years of operation.

77. THAT as a result of this pattern of overt or criminal acts the City Government of Cagayan de Oro is now forced to allocate what it calls “Contractual Obligation and Sharing of Revenue” amounting to P59,737,000.00 or a huge P60 million in the 2008 Budget (See Annex Q1);

78. THAT we are executing this joint complaint-affidavit to attest to all the above facts, and for the proper filing of a case for Conspiracy to Commit Series of Acts Constituting a Violation of Republic Act 7080 or the Anti-Plunder Law against all respondents.

Prayer

79. THAT though this is a mere affidavit-complaint we still would like to manifest our prayer that this good office of the Ombudsman, the guardians against corruption, order an immediate preventive suspension against all respondents who are still holding office to safeguard the integrity of the documents and to make sure that witnesses are duly protected;

80. THAT all respondents be found guilty of Violation of Republic Act 7080 or the Anti-Plunder Law;

81. THAT pursuant to the above law that provides a forfeiture clause for all ill-gotten wealth of those found to be guilty of violating the same, we pray that the BOT contracts entered into patently to plunder the coffers of the City Government in the next 20-25 years for both the Cogon Public Market and the Carmen Public Market be IMMEDIATELY RESCINDED and the stall rental rates for the poor public market vendors be returned to a reasonable and lesser price as when there was still no BOT contract for both;

82. THAT all the unexplained wealth obtained by all respondents including UKC Builders, Inc., from heavy equipment to other office equipment , found at Tablon this City be forfeited in favor of the City Government of Cagayan de Oro for entering in bad faith over and over with contracts that placed the City Government of Cagayan de Oro in great disadvantage.

83. THAT to prevent more grave and irreparable injury to the City Government of Cagayan de Oro and to the thousand of Carmen and Cogon Public market vendors and their families, the BOT contracts for Carmen and Cogon Public Markets that have been amended yet still found to be gravely disadvantageous to the City Government’s coffers by the COA in their Annual Audit Report 2006 be SUSPENDED UPON FINDING OF PROBABLE CAUSE;

84. THAT for this great and noble Office of the Ombudsman-Mindanao, the guardian against corruption, grant all other reliefs appropriate to protect the coffers of the City Government of Cagayan de Oro and the small pockets of the thousands of Carmen and Cogon market vendors and their families;

IN TRUTH WHEREOF, we have hereunto signed our names below, this ___ day of December 2007 at Cagayan de Oro City.

Letter from Businessman James Giam to Mayor Jaraula

May 19,2008

••

Hon. Constantino G. Jaraula City Mayor

This City

Sir:

As donor (of the lot where the terminal of the East Bound Public Utility Jeepney is located) and tax payer, I am requesting your good office to reconsider your Executive Order NO. 39 dated May 5, 2008 allowing all East Bound Public Utility Jeepneys to proceed, park, drop and pick-up passengers at the terminals established at/by the respective management of Oro Rama Mega Center and Limketkai Commercial Center, all at Lapasan, this City, by just paying a so called “Privilege Entry Pass”.

Worthy to note, that in 1996, the City Government of Cagayan de Oro was looking for a private property somewhere in the eastern part of the city suitable for the construction of the Terminal of the East Bound Public Utility Jeepneys because during that time the East Bound Public Utility jeeps were having a terminal at the Agora Public Market, located at Lapasan, this city. The intention and purpose of the City in transferring the terminal of the East Bound· Public Utility Jeeps somewhere in Barangays Gusa or Cugman was to prevent the East Bound Public Utility Jeepneys from entering the city taking into consideration that the passengers dropped by the East Bound Public Utility Jeepneys at the terminal would be catered and serviced by jeepneys plying the route of Cugman and Gusa thereby decreasing the number of vehicles that would enter into the city, thus, helping in decongesting the traffic along the Lapasan area and the city in general.

Taking into consideration the noble purpose of solving the traffic problem along Lapasan area in particular, I responded to the need of the City by offering to donate my valuable lot at San Pedro, Gusa, to be the site for the East Bound Public Utility Jeepney Terminal. On February 1997, after knowing that the lot I offered is located in between the National highway and the newly constructed J.R. Borja Extension, my offer was immediately accepted by the City. A Deed of Donation was executed by me as Donor and duly accepted by the donee City Government of Cagayan de Oro pursuant to Ordinance No. 5813-97. Copy of the Deed of Donation is hereto attached and marked as marked as ANNEX “A” and forming an integral part hereof. Due to the change of the City’s administration in 1998, the construction of the East Bound Jeepney Terminal was delay~ so I wrote a letter to the City reminding the latter of its obligation under the contract (Deed of Donation) to construct and complete the terminal within two (2) years reckoned from the date of signing and further informed the city of my intention to revoke the deed of donation. However, the City Government of Cagayan de Oro through its City Council passed Resolution No. 4184-99 and manifested its intention to pursue the establishment and construction of the passenger terminal, to wit;

“RESOLUTION ~1ANIFESTING THE CITY’S INTENTION TO PURSUE THE ESTABLISHMENT AND CONSTRUCTION OF A PASSENGER TERMINAL IN BARANGAY GUSA PARTICULARLY AT THE LOT DONATED BY MR. JAMES GIAM COVERED UNDER ORDINANCE NO. 5813-97 AND FOR THIS PURPOSE REQUESTING THE HONORABLE CITY MAYOR TO NEGOTIATE WITII MR. GIAM FOR THE POSSIBLE EXTENSION OF TIIE PERIOD FOR WHICH THE CITY SHOULD UNDERTAKE THE SAID PROJECT AS PROVIDED FOR IN THE DEED OF DONATION COVERING THE SAID LOT.”

One of its preambuIar clause clearly states as follows:

“WHEREAS, the establishment of said terminal is imperative, as it would contribute to the decongestion of along the Lapasan area and economic progress in Gusa, thereby promote the development of pocket urban away from the poblacion ”

Copy of Resolution No. 4184-99 is hereto attached and marked as ANNEX “B” and forming an integral part hereof.

On the same date that the Resolution was passed, Hon. Michelle Tagarda, Acting City Mayor during that time, wrote a letter to the undersigned and earnestly requested me to give the city government sufficient and ample time to complete and become operational the East Bound Terminal invoking as reasons are the public interest, the general welfare and the people of Cagayan de Oro. Copy of the letter is hereto attached and marked as ANNEX “C” and forming an integral part hereof.

3

In compliance to the request of the City Council., Mayor Vicente Y. Emano wrote a letter to the undersigned and requested me to extend the period for another One year within which to complete the construction of the terminal citing as reason that the City of Cagayan de Oro has much to gain from its operationalization. Once establish~ it will decongest traffic in Lapasan area as well as create pockets of development away from poblacion .. Copy of the letter is hereto attached and marked as ANNEX”D” and forming an integral part hereof.

Finding the request for extension meritorious, I extended the period to allow the City Government of Cagayan de Oro to complete the construction of East Bound PUJ Terminal and as a result the Deed of Donation was amended in 2002 and a new Ordinance No. 8431-2002 was also passed accepting again the donation. Copies of the Deed of Donation and ordinance No. 8431-99 are hereto attached and marked as ANNEXES “E” and “F” all forming an integral parts hereof.

After the Deed of Donation was amended, the City Government started the construction and spending a huge sum of money until the East Bound PUJ Terminal was completed and became operational wherein all East Bound PUJ’s were required to park at the terminal. The income from the operation of the terminal as shown from the record was high and the management was smooth. But for reasons known only to the public officials concerned, there were privileged East Bound Public Utility jeepneys that were allowed to establish illegal terminals in selected, influential, powerful and privileged big business establishments. But this was cut and abolished when the sitting City Mayor issued an Executive Order No. 33 dated October 5^th 2007 revoking all executive orders allowing selected PUJ’s and Aircon Vans to enter city proper and ordering all PUJ’s and Aircon vans to immediately resume operations as originally designated in the Eastbound or Westbound Terminals. One of the reasons invoked in the issuance of Executive Order No. 33 was to decongest traffic. However, on 5^th of May 2008 another Executive Order No.39 was passed allowing by this time ALL EAST BOUND PUJ’S TO PROCEED TO ORORAMA MEGA CENTER AND LIMKETKAI COMMERCIAL CENTERS to park, drop and pick-up passengers at the areas (terminals) designated by the latter under the guise of paying a PRIVILEGE ENTRY PERMIT worth (P20.00) Pesos. This Executive Order is even worse than before because it allows ALL the East Bound PUJs to proceed to Oro Rama Mega Center and Lirnketkai Commercial Center, all located at Lapasan, this City. Be it noted that one of the prearnbular clause invoked by the issuance of executive order no. 39 states as follows:

“WHEREAS VEHICULAR TRAFFIC TO AND FROM CAGA YAN DE ORO CITY ESPECIALLY IN RELATION TO THE VARIOUS DESTINATIONS IN THE EAST HAS GROWN TREMENDOUSLY, CREATING SERIOUS DIFFICULTIES AMONG DRIVERS, OPERATORS, MTD COMMUTERS, AND RESULTING IN ACCIDENTS AND UNNECESSARY VIOLENCE.”

Now, it is worth remembering that the primordial purpose of the city government in transferring the terminal of East Bound PUJs from Agora Market at Lapasan to Gusa, this city was to prevent the East Bound PUJ’s from entering the city in order to decongest the traffic at the Lapasan area. This is very clear from Resolution No. 4184-99 passed by City Council of the City Government of Cagayan de Oro copy of which was already attached and marked as annex “A” hereof, and also in the letter of former City Mayor Vicente Y. Emano wherein he categorically made mentioned that the City of Cagayan de Oro has much to gain from its operationalization. Once established, it will decongest traffic in Lapasan area. This problem is also adopted and shared by this administration as shown in one of the preambular clauses of Executive Order No. 39 wilen it said, “WHEREAS VEHICULAR TRAFFIC TO Al’lD FROM CAGAYAN DE ORO CITY ESPECIALLY IN RELATION TO THE VARIOUS DESTINATIONS IN THE EAST HAS GROWN TREMENDOUSLY, CREATING SERIOUS DIFFICULTIES AMONG DRIVERS, OPERATORS, COMMUTERS, AND RESULTING IN ACCIDENTS AND UNNECESSARY VIOLENCE.” Henceforth, why allow the East Bound PUJs and Aircon Vans to proceed to Oro Rama Mega Center and Limket Kai Commercial Center to park, drop and pick up passengers when these establishments are all located at Lapasan, the very same Lapasan area whose traffic problem was being remedied by the establishment and the transferring of the East Bound PUJ Terminal from Agora market at Lapasan to Gusa” this City. Why allow the management of Oro Rama Mega Center and Limketkai Commercial Center to establish their own private terminals in their own private lots for the East Bound PUJs and Aircon Vans to park drop and pick up passengers, is this allowed by our ordinance that these private corporations can establish private terminals for the East Bound PUl’s and Alrcon Vans?

All these are clear violations of the Deed of Donation and I was duped in donating my property on the belief that the same will be used to decongest the traffic at Lapasan area but the truth of the matter is the fact that my property was mortgaged and used to secure in part the ONE BILLION loan of the City Government of Cagayan de Oro to the Land Ban.1( of the Philippines. Proof to this is the hereto attached photo-copy of Transfer Certificate of Title No. T – 157116 marked as ANNEXES “G” and “G-1” showing the annotation that the property I have donated for the terminal of the East Bound PUJ’s in order to decongest the traffic at Lapasan area was mortgaged by the City Government of Cagayan de Oro to secure in part the One Billion loan of the City to the Land Bank of the Philippines. Because of this, I am requesting the Honorable City Mayor to revoke Executive Order No. 39, otherwise I will be constrained to look for other legal remedies in order to protect my interest as donor and tax payer.

Very truly yours,

MR. JAMES S. GIAM

Donor and Taxpayer

San Pedro Street, Gusa, Cagayan de Oro City

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