On Tuesday, the Sandiganbayan convicted former Palawan Governor Mario Joel Reyes and several former provincial government officials in connection with a series of infrastructure projects funded by the Malampaya Fund, citing falsified documents and irregular procurement processes across dozens of contracts.
The 625-page decision, penned by Presiding Justice Geraldine Faith Econg, held Reyes and co-defendants accountable in multiple counts of graft, specifically for violations of Section 3(e) of Republic Act No. 3019, also known as the Anti-Graft and Corrupt Practices Act.
Reyes was convicted in at least one of the cases for approving falsified documents tied to a project falsely reported as fully completed, leading to unwarranted payments.
The charges stem from a wider investigation into 209 contracts worth a total of P1.53 billion, funded through Palawan’s share of Malampaya natural gas royalties during Reyes’ administration between 2008 and 2009.
Of these, 159 criminal cases were brought before the court in 2017 against Reyes and 41 other individuals, including engineers, procurement officers, and contractors.
Background: Royalty Disbursement and EO 683
The projects were financed under the framework of Executive Order No. 683, signed in 2007, which temporarily granted Palawan a 40-percent share of the national government’s royalties from the Malampaya gas project, pending resolution of jurisdictional disputes.
Following the order, over a billion pesos were released to the provincial government, with Reyes as the sitting governor and designated Head of the Procuring Entity (HoPE).
The Commission on Audit (COA), in its subsequent review, flagged numerous inconsistencies in reported accomplishments of funded projects. Several were marked as “100-percent complete” despite missing or substandard materials, noncompliant carpentry work, or complete lack of physical implementation.
Convictions and Roles of Co-Accused
Among those convicted with Reyes were Alfredo Padua, former chief of the provincial quality control division, and engineers Rolly Matudio and Bayani Buenaventura.
The court found Padua and Matudio guilty in multiple counts for signing and approving fraudulent Statements of Work Accomplished (SWAs) and inspection reports, which were later found to contain false claims of project completion.
According to the court, Reyes exhibited “manifest partiality” in his capacity as HoPE, having “improperly evaluated the bid proposals,” which led to the awarding of overlapping contracts to a single contractor operating with the same key personnel.
The decision cited Reyes’ approval of disbursements based on falsified documentation, contributing to excessive and unjustified payments.
He was sentenced to a prison term of six to ten years in connection with one of the criminal cases. However, he was acquitted in other charges, including those involving the construction of a generator house and road segment, as the court found no direct evidence linking him to document falsification in those instances.
Dismissals, Deaths, and Archived Cases
Several criminal charges were dismissed by the court due to lack of evidence or insufficient proof of criminal intent.
In addition, the prosecution against certain individuals was terminated due to their deaths prior to the final ruling.
These included provincial general services officer Ferdinand Dilig, provincial engineer Charlie Factor, provincial administrator Romeo Seratubias, and contractors Rodolfo Gallardo (Rodcel Construction), Federico Tiotangco (BCT Trading and Construction), and assistant provincial engineer Manuel Cabiguen.
Other cases remain archived due to the non-appearance or fugitive status of the accused, including Elizabeth Tisara (DJ Builders Corp.), Darrell Elivera (resident engineer), Efren Tabangay (ED Tabangay Construction), and provincial treasurer Teofilo Palanca Jr.
Link to Ortega Assassination
The infrastructure scandal has long been linked, both in media reports and legal proceedings, to the 2011 assassination of environmentalist broadcaster Gerry Ortega.
Ortega, who was a vocal critic of Reyes’ administration, was shot in Puerto Princesa City. The gunman, Marlon Recamata, confessed shortly after his arrest and identified Rodolfo “Bong” Edrad Jr., Reyes’ former security aide, as the person who hired him. Edrad later turned state witness and named Reyes as the alleged mastermind.
Reyes fled the country with his brother, former Coron Mayor Mario Reyes Jr., in 2012. The two were arrested in Thailand in 2015 for overstaying and deported back to the Philippines.
Following a brief release from detention in 2018, after the Court of Appeals ruled in his favor, Reyes’ legal fortunes shifted again in 2019 when the CA reversed its earlier decision.
On March 29, 2023, the Supreme Court ordered the Puerto Princesa Regional Trial Court to issue a warrant for his arrest and resume proceedings.
He went into hiding shortly after the warrant was issued by Judge Angelo Arizala, but surrendered in September 2024 while undergoing medical treatment at a Metro Manila hospital. Reyes has remained under hospital arrest since then.
The Department of Justice has since confirmed that it intends to revive the Ortega murder case, now that Reyes is once again in government custody.