Cuneco
Cebu City Councilor James Anthony Cuenco has been ordered dismissed from public service by the Office of the Ombudsman for alleged irregularities made over a decade ago when he was chief of staff of his father, former Cebu City South District representative Antonio Cuenco.
The development has put yet another twist to the fight for majority rule in the Cebu City Council — with the upper hand now belonging to the administration’s party Bando Osmeña–Pundok Kauswagan (BO-PK).
In a 13-page decision, the Office of the Ombudsman found Councilor Cuenco and another former staff member Manuel Tipgos guilty of serious dishonesty and grave misconduct over alleged irregularities in the implementation of the Tony N’ Tommy (TNT) health program which was funded by the now-defunct Priority Development Assistance Fund (PDAF) of the older Cuenco in 2002.
The two were penalized with dismissal from service and cancellation of eligibility, forfeiture of retirement benefits and perpetual disqualification to hold public office.
Emma Joyevelyn Calvo, acting director of the Department of Interior and Local Government (DILG) Cebu City, said they served the order to the office of Councilor Cuenco at the City Hall last Tuesday afternoon.
Copies of the decision were also given to Mayor Tomas Osmeña and Vice Mayor Edgardo Labella.
When sought for comment, Councilor Cuenco said his lawyers will contest the order by filing a petition for a temporary restraining order (TRO) before the Court of Appeals (CA).
“I will just wait until we have filed our appeal before the CA. I will just leave it to my lawyer to speak for me at this time,” he said in a text message.
Asked if he will cease and desist from his functions as city councilor, he said he will also wait for the advice of his lawyers especially after the filing of their petition for a TRO.
‘Falsified prescriptions’
The decision stemmed from a complaint filed before the Office of the Ombudsman in 2013 against Councilor Cuenco, who ran the TNT health program, Tipgos, and private respondent Sisinio Villacin Jr., proprietor of Dell Pharmacy. The administrative charges against Villacin was dismissed for lack of jurisdiction being a private individual.
In September 2008, a Special Audit Team (SAT) formed by the Commission on Audit (COA) issued a notice of disallowance on the P3.34-million payment for anti-rabies drugs and medicines purchased under the TNT program due to alleged falsified prescriptions and documents.
Using the COA finding as a basis, the respondents were accused of “committing dishonesty and grave misconduct in facilitating a devious scheme intended to steal government funds.”
It was in 2001 when then-representative Cuenco entered into a memorandum of agreement (MOA) with the Vicente Sotto Memorial Medical Center (VSMMC) appropriating funds from his PDAF to cover medical assistance for indigent patients under the TNT health program.
But several years after the implementation of the program, allegations of forgery and falsification of prescriptions and referrals surfaced.
The COA said in several audits on the use of the older Cuenco’s PDAF in December 2004 that there were fictitious patients and falsified prescriptions for anti-rabies drugs and other medicines.
Then VSMMC medical center chief Dr. Filomena delos Santos attested that when the program started, the hospital screened, interviewed and determined the TNT’s beneficiaries. But she said it changed in 2002 when congressman Cuenco put up a TNT office in VSMMC ran by his staff, which took over the process, leaving the hospital a mere “bag keeper.”
In a separate affidavit, Louies James Yrastorza, an administrative assistant of the TNT office, also attested that in August 2003, “the names of the supposed beneficiaries were fabricated and that it was respondent (Councilor) Cuenco who signs the fake referrals,” the decision read.
With these alleged recorded irregularities, the anti-graft office concluded that Councilor Cuenco and Tipgos committed “serious acts of dishonesty in implementing the TNT Program.”
“Consequently, the government suffered injury in the amount of P3,386,697.10 for the payment of drugs and medicines with falsified prescriptions,” the decision further read.
As to the grave misconduct aspect, the anti-graft office said the guidelines on the release of the PDAF were not followed, as well as government rules on the procurement of medicines supplier, and the MOA with VSMMC.
In earlier counter-affidavits, Councilor Cuenco denied the allegations against him, saying there was no evidence showing he falsified any prescription or referral slip and that he gave unwarranted benefit to Dell Pharmacy.
Tipgos also denied that he worked at the TNT office. He said when the transactions were made, he was already employed as a revenue officer of the Bureau of Internal Revenue (BIR).
Sought for comment, the older Cuenco said he was surprised with the sudden issuance of the decision.
The decision was approved by Ombudsman Conchita Carpio-Morales last August 23.
“I am surprised about this development because the alleged incident happened in 2002. And there was also a similar case filed against me which was already dismissed by the Ombudsman. It comes as a big surprise why they have revived it,” the former congressman told Cebu Daily News in a phone interview yesterday.
Majority back to BO-PK?
With the expected exit of the younger Cuenco from the City Council, there will be two vacant seats in the City Council following an earlier resignation of councilor Nendell Hanz Abella who was appointed commissioner of the National Labor Relations Commission (NLRC) Seventh Division.
When Councilor Cuenco was still around, the two council blocs were at an even 8–8. Although the Barug Team Rama camp is expecting another ally in Renato “Junjun” Osmeña Jr. as Abella’s replacement, his appointment is yet to be signed by President Rodrigo Duterte.
With Cuenco out, the standing in the council will become 8–7 in favor of the Bando Osmeña-Pundok Kauswagan (BO-PK) party.
Sought for comment, Councilor Joel Garganera of Barug Team Rama said his “intuition” told him that Mayor Osmeña could be involved in Cuenco’s dismissal order.
“He is moving heaven and earth to preserve his majority. And I would say, somehow, he has a hand on this,” he told reporters.
Mayor Osmeña, in a Facebook post, reacted to Cuenco’s dismissal by saying, “I guess the session he (Cuenco) boycotted yesterday is the last one he gets to boycott forever.” The mayor was referring to a boycott staged by Barug Team Rama councilors on Tuesday’s council session.
In a press conference yesterday, the mayor said that Cuenco’s dismissal only showed “what Team Rama is all about.”
“(Former City Councilor Gerardo) Carillo is forced out from service because he used his position by having his staff act as a cook. Mike Rama is the most suspended mayor in the history of Cebu,” he told reporters, in reference to the two members of Barug Team Rama.
The mayor also said that with majority temporarily in their favor, he would push for some legislation in the City Council, including his annual budget proposal for next year and the rescission of the sale of the South Road Properties (SRP) lot to Filinvest Land Inc.
The DILG said, though, that Barug Team Rama and their official party United Nationalist Alliance has the authority to nominate Councilor Cuenco’s replacement.
But just like in the case of Abella, it has to go through the process, including getting an official appointment from President Duterte.