Republic of the Philippines

OF'FICE OF TITE OMBUDSMAN-VISA

Department of Agriculture Region VII Compound
Guadalupe, 6000 Cebu City
September 11,2014
HON. RODOLFO ELMAN
Acting Deputy Ombudsman for the Visayas
OFFICE OF THE OMBUDSMAN-VisaYas
Department of Agriculture Regiion 7 Compound
Guadalupe, 6000 Cebu City
Sir:
I am filing this CRIMINAL and.A,XIMINISTRATM complaint against City Mayor
JED PATRICK E. MABII-OG of Iloilo city for the following offenses: .
1. Unexplained Wealth under Section 8, Republic Act No. 3019 in relation to Section
2, Republic Act No. 1379;
2. Dishonesty;
3. Grave misconduct;
4. Ferjury as defined by Art. 183 of the Revised Fenai Code;
5. Violation of Section 3 (e) of Republic Aot No. 3019.
In support of this Complaint, I have attached my eomplaint/affidavit, with its annexes, to
establish the facts and circumstances to prove the commission of these offenses. Also
attached is a Certificate of Non-Forum Shopping.
Very truly yours,
-mroRADA.
No. 2 Kasoy St., Block 11
Vitrla San Lorenzo Sutrd.
Lapaz,5000lloilo City
Republic of the Philippines
)
City of Iloilo
)
S.S.
SF
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COMPLAII{T AFFIDAVIT
I, MANUEL P. MEJOI{.ADA, of legal age, Filipino, maruied, and a resident of No. 2 Kasoy St..
Block 11, Villa San Lorenzo Subdivision,Lapaz,Iloilo City, after being duly sr.vom in
accordance with law, do hereby state:
1. This is a CRIMII'{AL and ADMINISTI{ATM complaint against JED PATRICK E.
MABILOG, incumbent City Mayor of Iloilo City, with office address at the New Iloilo
city Ha1lBuilding, De la Rarna St., Iioilo City for UNEXPLAINED WEALTH as
deflned under Section 8, Republic ActNo. 3019 and Section 2, Republic ActNo. 1379,
DISHONESTY, GRAVE M.ISCOI{DUCT, PERJURY and other such offenses as may
be detenniried by this Honorable Office;
2. This complaint is based on the Statement of Assets, Liabilities and Net Worth (SALIJ)
filed by respondent Mabilog for the fiscal year ending December 31,2:013, a copy of
which u'as furnished complainant by the Office of the Ombudsman-Visayas (Annex'oA"
of this COMPLAIF{T), and other evidence obtained fiom various government agencies;
3. During this period, respondent Mabilog acquired properry, cash and investments in
amounts rnanifestly disprorrortionate to his legitimate income as City Mayor and
businessman, particularly with respect to the following:
a. In his SALN fior the year ending December 3l,20l3, respondent Mabilog listed
under the heading "I. Assetsj_a.
BpAl Properties'" the purchase of a residential
.
house and lot in Molo, Iloilo City at an acquisition cost of P6 rnillion during the
period covered;
b. In the same SALN, under the heading "I. Assetsi b. F_ersonal Pronerties".
respondent reflected the foliowing:
i. "Cash and Cash Equivalents" in the amount of Y6,026,478.00; and
ii. "Investments" in the amount of P2,605,i 92.55.
c. Respondent reported total liabilities of P25,446,364.44.
d. Based on the above information, respondent Mabilog leported his Net Worth
(Total Assets less Total Liabilities) at P68,341,622.41 as of December 3 1
,2AI3.
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e. A comparative table in the respondent's SALN showed that his Net Wodh for the
year ending December 31,2012 stood at P59,358,539.89.
1. Based on the comparative figures far 2012 and2013, the Net Worth of respondent
Vlabilog increased by P8,983,082.52 in
just
a one-year period.
g. In the space for "Business Interests and Financial Connections", respondent
Mabilog listed, among others. his participation as incorporator for the foliowing
corporations:
i. Mega Pacific Food Services, Inc.,
'
ii. Globai Jami Motors Corporation,
iii. Iloilo One Esplanade Realty, and
iv. Iloilo Huppy Haus Donut.
4.
IJNtrXPI_,AII{ED WEAT,TII
a. Respondent Mabilog's Net Worlh spiked by P8,983,082.52 in
just
one year.
i. By any standards, such an increase in wealth of a public official is grossiy
or rnanifestly disproportionate to his legitimate income as a public official
and businessmatl and fails squarely under the purvieu, of Section 8 of
Republic Act No. 3019:
1. "Section 8. Primafctcie eyiclence of and dismiss,al dtte to
rmexplained wealth. If in accordance with the provisions of
Republic Act Numbered One thousand tluee hrutdred seventy-nine,
a public official has been found to have acquired during his
incumbency, whether in his name or in the nafile of other persoits,
an amount of property and/or money manifestiy out of propofiiori
to his salary and to his other lau.ful income, that fact shall be a
.
ground for dismissal or removal. xxx"
ii. Respondent's stockhoidings and investments as indicated in his own
SALN show an expost-rre of abrout P20,400,000.
iii. His liabilities decreased by P126,779.97 even though he listed "Notes
Payable" of P3,000,000.
iv. There is no way lespondent could
justifl,
tire acquisition of aclditional
wealth or assets that is valued at almost one half of his equity investments
in business"
1. Respondent purchased a residential property rvith a lot area of 664
square meters in CASH for tire amount of SIX MILLION PESOS.
b.
This fact was reporled by respondent Mabilog in his SALN
as having been aoquired in 2013;
Attached is a certified copy of the Deed of Atrrsolute Sale
executed on April 30, 2013 between the previous owners of
the ploperly on the one hand and spouses Jed Patrick E.
Mabilog and Ma. Victoria G. Mabilog on the other hand
(,A.nnex
6(8"
of this COMPLAINT) issued by the Register
of Deeds for Iloilo City;
Subsequent to this sale, the Register of Deeds of Iloilo City
issued Transfer Certificate of Title No. 095-20140015?4
to JED PATRICK E. MABILOG, married to MA.
VICTORIA G. N{ABILOG to evidence their ownership of
this property described as:
"A parcei of land (Lot No. 2024 of the Cadastral Surve;r of
Iloilo, witir the improvernents thereon, situatecl in the
Municipality of Iloilo, bounded on the NE by Lot No. 2025;
on the SE,, by a ditch; on the SW, by Lot No. 2023; and on
the NW, by Calle San Jose xxx";
A certified copy of the above-mentioned TCT No. 095-
2014001524 is hereto atlached as Annex
"C"
of tiris
COMPLAINT.
2. Respondent Mabilog reported new investments amounting to
P2,6A5,192.55 arnong his personal assets during the peliod covered by
lris SALN ending December 31,2013;
3. Respondent Mabilog also reported an INCREASE in his "Casir and Cash
Equivalents" in the amount of EIGHT HINDRED FORTY NINE
THOUSAND ONE HUNDRED TEN PESOS (p849,110.00).
4. To repeat, his net worth duling this period increased by P8,983,082.52.
i. "IJirexplained wealth" is defined by Section 2, Republic Act No. 1379 as
any amorult of property which is manifestiy out of proporlion to the salary
of a public official or employee and other legitimate income.
1. While it is true that respondent Mabilog has investments in
business, his capital exposure cannot satisfactorily explain the
accumulation of wealth during the period covered.
a.
c.
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a. No businessman can generate net income (net of expenses
and taxes) of almost one half of his equity investments.
b. In the case at hand, the spike in respondent's net u,orth
would amount to about 45% of his declared stock equities
and investments.
2. Tire
job
of his wit-e as Comptroller of a Canada-based corporation
is not stated in respondent's SALN, but even with an executi.ve
position, such increase in wealth could not be explained by her'
salaries. The tax ievel for corporate compensation in Canada is
high, and unless respondent can present incontrovertible proof that
his rvife's income (net of taxes and living expenses) is sufficient to
accumulate sr"rch wealth, the presumption under Section 2, RA
1379 works against him.
s.
prsHoNEsTY
a. Respondent Mabilog is liable for DISHONESTY for his failure to disclose the
sources of his income or ploperly explain how his wealth grew by such
disproporlionate lneaslrre compared to his legitimate saiary and other income.
i. As the Supreme Court held in Ombudsman versus Manuel Valencia,
G.R. No 183 890, April i 3,2011, "From the above, when the statement of
wealth becomes manifestly disproportionate to an employee's income or
other sources of income and he lails to properly accorurt ol explain his
other sources of income, he becomes liabie for Dishonesty."
On the face of his SALN for the year ending December 31,2073, respondent
Mabiiog could not show satisfactorily how his net worlh grew by almost Nine
Million Pesos in a span of one year.
i. It does not even disclose his income liom whatever sources, which is a
requirement of Republic ActNo. 6713.
The oniy logical conclusion that could be derived from the SALN is that
lespondent Mabilog suppressed or hid information as to the sources of his income
to wanant such wealth accumulation, for w-hich he should be held liable for
DISHONESTY.
Respondent Mabilog also reported as having outstanding bank loans in Canacla:
i. For 2A12, he reported that his bank loans stood atP21,587,615.00;
ii. For 2013, he reporled tirat his bark loans stood atP27,783,600.00;
iii. This disclostue has doubtful integrity;
b.
d.
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iv. For a huge bank loan, it defies financial iogic that the decrease in the
principal amount woLrld only tre about P400,000.00;
v. There is more reason to suspect that this reported bank mortgage loan is
spurious because in his 2007 SALN, r'espondent Mabilog already reporlecl
that he had a bank mortgage in Canada for the amount of TWENTY
MILLION PESOS (P20,000,000.00).
1. A copy of respondent Mabiiog's SALN for the year ending
December 31,2007 is attached as Anncx
"D".
vi. It was also in 2007 that respondent Mabilog reported having purchased a
second house in Canada, and it was for that purpose that he took or,rt a
bank loan to finance the acquisition.
vii. It defies logic that a bank mofigage obtained in 2007 to hnance the
purchase of a house and lot would not substantially be reduced u,ith
diligent and religious payments of amortizations over a period of six long
years.
viii. This original bank ioan in 2007 didn't only not reduce, br-rt it even
. increasecl, if the 2012 and 20i3 SALN of respondent Mabilog is to be
believed.
ix. Respondent's act in iisting a bank loan in Canada in his 2013 SALN is
rnost likely a ploy, a lie, a misrepresentation, to make it appear that his Net
Worth is smalier than it really is.
x. Unless he can present incontrovertible proof that this banl< loans in
Canada are true and corlect, respondent Mabilog should also be held liable
for DISIfONESTY based on this deception in lds SALN.
ir. These circumstauces show that respondent Mabilog had the malicious intention to
suppress the truth and make false statements.
6,
GRAVE
MTSCONDUCT
a. In his SALN for the yeal ending December 31,2073, respondent reporled having
financial interests in four new colporations, namely:
i. MEGA PACIFIC FOOD SERVICES, INC.;
ii. LOILO ONE ESPLANADE ITEALTY;
iii. IOILO HAPPY HAUS DONUTS; and
iv. GLOBAL JAMI MOTORS CORPORATION.
.
b. In an authenticated General Inlbmation Sheet (GIS) issued by the Securities and
Exchange Comrnission (SEC), which is hereto attached as Annetr
"ltr"_q[
r[]rie
COMPLAINT, it appears that respondent Mabilog is an incorporator and
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stockholder of ILOILO ONE ESPLAI"{ADE REALTY with a3AYo share of rhe
capital stock.
i. The same document showed that PATRICK ALAN SY or,vns another 30%
of the capital stock, or 37,500 shares subscribed.
ii. Both respondent Mabilog and PATRICK ALAN Sy own 60yo, or
majority of the capital stock.
iii. PATRICK ALAN SY is listed as the Chairman of the Boarcl of Directors
and its President.
1. Mr. Sy is also an Executive Assistant in the Office of the City
Mayor.
2. He was appointed to that position by respondent Mabilog.
3. Respondent Mabilog is his imrnediate superior.
4. NIt. Sy was given the designation as "Executive Assistant for
Dengue Concerrs"; he is neither a medical doctor.or a nurse.
5. It is only logical to conclude that Patrick Alan Sy is a dumrny for
respondent Mabilog, and he was given this appointment to allow
him to enjoy a govefilment
salary even if he doesn't perfomr any
public duties.
iv. PATRICK ALAN SY is also listed as stockholder and incorporator in
MEGAPACIFIC FOOD SERVICES INC., ILOILO HAPPY I{AUS
DOI{UT CORPORATION and GLOBAL JA[4I MOTORS
CORPORATION.
1. Mr. SY is PRESIDENT of Global Jami Motors Corporation.
2. He is CORPORATE SECRETARy of lloiio Happy Haus Donut
Corporation.
c. ILOILO ONE ESFLANADE REALTY is the owner of a two-story building
situated near the Molo end of a govemment project known as "ILoILo
ESPLA}TADE".
i. This building occupies a strategic location as it enjoys a captive market
among strollers and
joggers/walkers
on the "Iloilo Esplanacle", considered
a tourist attraction in Iloilo City ftinded from public funds.
ii. It is obvious that the owller of this building accrued tremendous profits
because of its vantage position.
iii. Respondent Mabilog, being the loca1 chief executive of Iloilo City, took
advantage of the "inside" infonlation about infrastructure projects slzrtecl
to be developed in Iloilo City, and maneuvered to lease the property on
which that building is now situated.
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iv. The SEC GIS showed that the corporation was registered on September 24,
2012, which is
just
about the time the "lloilo Esplanade" was inaugurated
and opened to public use.
v. The City Assessor's Otfice issued Tax Declaration No. 14-05-0i8-01244
covering a building owned by PATRICK ALAI{ SY/ILOILO ONE
ESPLANADE ITEALTY CORF., with location of property indicated as
"R. Mapa St., Barangay Tabucan, Mandurriao, Iloilo City. (A duly
certified copy of this Tax Declaration is hereby attached as Annex
6(F"
of
this complaint)
vi. A photograph of this building known as
o'One
Esplanade" is also attachecl
as Annex
"G"
of this cornplaint.
vii. As shown in the Tax Declaration above-mentioned, the market value of
the building is ONE MILLION FIVE HLINDRED FOUR THOUS,AND
TWO HUNDRED FIFTY PESOS (p1,504,250.00).
1. Did the company bonow rnoney to fund the construction of the
buiiding? Or did it come from respondent Mabiiog rvho is tlie
majority owner of the company?
viii. Likewise, the City Assessor's Olfice issued Tax Declaration lJo. 14-05-
018-01243 registered in the narnes of Rosalinda F. Pison m/to Angel
Piamonte, Victor F. Pison, Cynthia F. Pison, Donato F. Pison III, E<lgarcio
F. Pison and Delia F. Pison covering a piece of land known as "Lot 3277-
A-2-B-9", classified as "Residential Property". with an a1'ea of 187 sq.
meters (Attached as Annex
"[I"
of this complaint).
ix. Thus, it becomes clear that respondent Mabilog used his position ---
wrongfully, illegally and immorally --- to gain financial advantage over
other businessmen who might also have wanted to lease that strategicaliy-
located piece of land and build a sirriiar building on the same.
1. Respondent Mabilog gave himself unwarlanted benefits trecause of
his power and influence.
2. Respondent Mabilog prejudiced other businessmen because he
changed the complexion of the business envirorunent in Iloilo City
--- he became an active player, and the playing field was no ionger
level; it was heavily tiited in his favor.
Respondent Mabilog's other acts of being an incorporator/majol stockholder of
ILOILO HAPPY HAUS DONUT, MEGA PACIFIC FOOD SERVICES, N'{C.
and GLOBAL JAMI MOTORS CORPORATION reveal the CONFLICT OF
d.
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INTEtttrST in the performance of his functions and duties as City Mayor as he
broadened his business activities in Iioilo City.
i. Attached are photocopies of the Genelal Infonlation Sheets (G.I.S,) on
these corporations duly atithenticated by the Securities and Exchange
Commission (SEC) as Annexes
"I,,,
*J,,
and
,,K,
to show that
respondent Mabilog is a stockholder and investor in them.
ii. Such acts also show that respondent Mabilog has a business agenda to take
.
advantage of his position as City Mayor for financial gain, as he is in a
position to extlact favors and concessions fiom companies seeking to do
business in Iloilo City during his incumbency.
iii. It tnust also be highlighted that a Locai Chief Executive is a full-tirne
position which requires a2417 focus on his duties and responsibilities, and
his ACTIVE business engagements will distract his attention from the
same.
1. His acts and behavior run counter to the NORMS OF CONDUCT
for public officials under Section 4, Republic Act No. 6113.
iv. Responclent Mabilog also committed GRAVE MISCONDUCT in hiring
Mr. PATRICK ALAN SY as "Executive Assistant for Dengue Concerns"
when in truth md in fact, Mr. Sy is a business paftner r.vith chief
responsibility of running the affairs of his various businesses.
1. This act caused undue injury to the Govelnment and gave
unwaffanted benefits to Mr. SY.
7. CONCLUSION
Public office is a public trust and public officers must at all times be accountable to tlie
people, serve them with utmost responsibility. integrity, loyalty, and efficiency, act r,vitlt
patriotism and
justice,
and leacl modest lives.1
The acts aud demeanor of respondent Mabilog in the performance of his duties and
obligations as City Mayor of iloilo City make a mockery of this Constitutional principle.
As sir.cwr by his own SALN for the period ending December 31,2013, respondent
Mabilog treated public office as a vehicle for private gain. He took advantage of his
powerful position to accrue unwarranted benefits for himself and deprived other
individuals from pursuing business opportunities because the playing field had been tilted
in his favor.
T'he above fucts and circumstances, supported by imefutable documentary evidence,
clearly establish that the comupt activities of respondent JED PATRICK E. MABILOG
1
Francisco Duque versus Florentino Veloso, G.R. No. 196207,
june
L9, 2012
enabled him to accumulate wealth manifestiy disproportionate to his legitimate iircorne.
The means he employed to achieve that were characterized with dishonesty and grave
misconduct. He enriched himself by exploiting the public office he held,
Respondent Mabilog tamished the image of public service with his acts and demeanor
that ooze with graft and corruption. As the Supreme Court has held, "Greater damage (to
the public service) comes with the public's perception of comrption and incompetence in
the Govemment."2 The totality of his corrupt acts and clemeanor is the complete opposite
of the NORMS OF CONDUCT for public officials.3
trn addition to (a) Unexplained Wealth defined under Section 8, Republic Act No.
3019 and Section 2, f{.epublic Act No. 1379, (b) Dishonesty and (c) Grave Misconduct,
respondent Mabilog aiso committed the crime of Perjury as dellned under Article 183 of
the Revised Penal Code, as the Statement of Assets, Liabiiities and Net Worth (SALN)
for the year ending Decembel 31, 2013 was filed under oath.
He also violated Section 3 (e) of Republic Act No. 3019 in the appointment of
PATRICK ALAN SY as his Executive Assistant for Dengue Concems.
8. I am executing this Affidavit for the purpose of filing a CRIMINAL and
ADMINSTRATM complaint against respondent JED PATRICK E. MABILOG for
the offenses herein enumerated before this Honorable Olfice and to attest to tlie
truthhriness of the foregoing statements.
9. Furthemrore, affiant sayeth naught.
IN WITNESS WHEREOF, I have hereunto rny signature this
JLtlr.day
of September,2074 in
Iloilo City, Philippines for Cebu City.
M$ilEnronaoa
C o m p la in an t/,.\ffiant
'
Jero.u lapson v. Civil Service Commission, G.R. No. 1'89479, April 12,201L.
3
Section 4, Republic Act No. 6713
r-
SUBSCRIBED AND SWOttN to before me this
. SEP I
I
2!1{
#"
irrtfo City, Philippines.
I hereby bertify that I have personally examined the affiant *d; ,rrklry *G}yhat he
voluntarily executed and understo o d hi s complaint-affidavit.
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