Former Laguna Governor E.R. Ejercito’s bid for a political comeback has hit another legal snag.
This, after the Supreme Court affirmed a decision of the Sandiganbayan convicting him of graft for awarding a contract to an unlicensed insurance company without public bidding.
According to a news release, the SC said its First Division found Ejercito and Marilyn Bruel, owner of First Rapids Care Ventures (FRCV), guilty of violating Republic Act (RA) 3019 or the Anti-Graft and Corrupt Practices Act.
They were sentenced to up to eight years in prison and permanently banned from holding public office.
Ejercito, who was also disqualified from office as governor in 2013, is currently running for mayor of Pagsanjan, where he served from 2001 to 2010.
In the 2022 elections, he also attempted to run for mayor of Calamba City, where he was defeated by incumbent Mayor Roseller “Ross” Rizal.
Contract anomalies
The case stemmed from a complaint filed by the United Boatmen Association of Pagsanjan (UBAP), which accused Ejercito and other local officials of awarding a contract to FRCV without public bidding.
Under the contract, FRCV provided accident insurance for tourists and boatmen at the Pagsanjan Gorge Tourist Zone, even though the company lacked a license from the Insurance Commission.
The Office of the Ombudsman filed charges against them before the Sandiganbayan. While the vice mayor was acquitted, Ejercito, Bruel, and several council members were convicted.
In defending their actions before the SC, Ejercito argued that FRCV was the only qualified service provider and that public bidding was unnecessary, while Bruel claimed that the contract was for special services and not insurance.
The SC disagreed and ruled that the contract was for insurance and therefore classified as “goods” requiring public bidding under the Government Procurement Reform Act.
“Procurement through competitive bidding aims to protect the public interest by offering the best possible advantages through open competition and avoiding any suspicion of favoritism or anomalies in the execution of public contracts. Exceptions to bidding are only permitted in rare cases, such as emergencies or multiple failed bidding attempts, which did not apply in this instance,” the high court said.
Instead of following the required bidding process, Ejercito directly awarded the contract to FRCV through “negotiated procurement” without valid justification.
RA 3019 prohibits public officers from unfairly favoring private parties by granting them special benefits, advantages, or preferences through bias, bad faith, or serious negligence.
The SC found that Ejercito knowingly gave FRCV an unfair advantage, bypassing legal procedures and ignoring clear red flags.
“FRCV lacked a Certificate of Authority from the Insurance Commission. It was also registered with the Department of Trade and Industry and the Bureau of Internal Revenue (BIR) just five days before it offered its services to Ejercito. These suggest that FRCV was created solely to provide specialized services to the Municipality of Pagsanjan despite having no prior experience,” the SC noted.
“By purposely sparing FRCV from the rigors of the processes under the procurement law and consciously turning a blind eye to irregularities, [Ejercito] gave it unwarranted benefit, advantage, or preference.”
The Commission on Elections (Comelec) has yet to comment on whether the SC decision will affect Ejercito’s candidacy in the 2025 elections.
(With report from PNA)
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