ILIGAN City Rep. Celso Regencia filed administrative and criminal complaints against Mayor Frederick Siao before the Office of the Ombudsman in Davao City today, February 18, over alleged irregularities in the contract for the completion of the Pala-o Market project.
Regencia accused Siao of violating Sections 3(e) and (g) of Republic Act 3019 (Anti-Graft and Corrupt Practices Act), Article 217 of the Revised Penal Code (malversation of public funds), and committing grave misconduct and abuse of authority.
In an interview, Regencia denied political motives behind the case, pointing out that he and Siao are running for different positions — Siao for mayor and Regencia for Iligan’s lone congressional seat.
"Nganong wala nila gihuman ang merkado nga wala naman nay problema kay naa nay kantidad nga gilaan para diha," Regencia said.
Alleged Contract Irregularities
Regencia and five other complainants — Narsales Salubre Jr., Elsa Aligno Dungoc, Jukiet Radoc, Mary Jane Mierla, and Lilibeth Atwil — allege that Siao awarded a P253.9-million contract to Metro StoneRich Corporation without securing prior approval from the Sangguniang Panlungsod, violating Section 455 of the Local Government Code.
The complaint states that:
⬣ The original project cost was P583.4 million, with BM Marketing completing 92.71% of the work. Despite this, Siao allegedly awarded a new contract worth P253.9 million, causing an undue price increase of P231.3 million.
⬣ An advance payment of P38 million was allegedly given to Metro StoneRich Corporation without proper justification, violating Article 217 of the Revised Penal Code.
⬣ BM Marketing’s contract was wrongfully terminated, with the Construction Industry Arbitration Commission (CIAC) later ruling the termination invalid and ordering the city to pay P560.8 million to BM Marketing.
⬣ The delayed project has caused financial hardships for vendors and inconvenience to the public.
Regencia said the complaint aims to uphold transparency and prevent further misuse of public funds.
