Mike Rama sacked anew over multi-million garbage deals

Cebu City Mayor Michael Rama

CEBU CITY, Philippines — The Office of the Ombudsman has dismissed former Cebu City Mayor Michael Rama from government service for the second time in less than a year after finding him guilty of grave misconduct and conduct prejudicial to the best interest of the service in connection with the alleged irregular awarding of garbage collection contracts.

In a decision dated January 3, 2025, the Ombudsman also dismissed five former members of the city’s Bids and Awards Committee (BAC): Leizl Calamba, Lyndon Basan, Conrado Ordesta III, Janeses Ponce, and Dominic Diño.

The complaint, filed by Jundel Bontuyan in August 2023, alleged that Rama and the BAC awarded three garbage collection contracts to Jomara Konstruckt Corp., ACM Hauling Services, and ARN Central Waste Management without conducting a competitive public bidding, violating Republic Act No. 9184 or the Government Procurement Reform Act.

READ: Preventively suspended Cebu City Mayor Michael Rama banned from public office

Findings of the Ombudsman

The case originated from emergency procurement undertaken following the devastation caused by Typhoon Odette in Cebu City in December 2021.

The Bids and Awards Committee (BAC) recommended negotiated procurement, which resulted in the awarding of several contracts. These included P4.96 million to ACM Hauling Services, P4.99 million to Jomara Konstruckt Corp., P35 million to ARN Central Waste Management, and an additional P12.83 million contract with ACM.

While the respondents justified bypassing competitive bidding due to the state of calamity and urgent need for waste disposal, the Ombudsman ruled that their actions violated procurement laws.

READ: EXPLAINER: Rama suspension and why the Ombudsman ordered it?

The decision stated that the BAC members failed to conduct due diligence in verifying the eligibility of the suppliers and did not properly recommend the awarding of contracts to Rama, who then approved the deals despite lacking a formal BAC endorsement.

The ruling concluded that their gross inexcusable negligence allowed the three private firms to gain unwarranted benefits from the contracts.

Aside from administrative penalties, the Ombudsman also ordered the filing of criminal charges against Rama and the BAC officials for violating the Anti-Graft and Corrupt Practices Act.

However, no penalties were recommended against Jomara, ACM, and ARN, the companies that received the contracts.

Second dismissal for Rama

This is the second dismissal order issued against Rama in less than a year. In October 2024, the Ombudsman also dismissed him from government service after finding him guilty of nepotism and grave misconduct for appointing his two brothers-in-law as casual employees in Cebu City Hall.

READ: Nepotism: The complex, distasteful act of naming relatives to gov’t posts

The decision was signed by Graft Investigation and Prosecution Officers Myra Nimfa Solidum Mendieta and Roseann Claudine M. Pasion, reviewed by Preliminary Investigation and Administrative Adjudication Director Nellie Boguen-Golez, and approved by Deputy Ombudsman Jose M. Balmeo Jr.

As of this writing, Rama has yet to issue a statement regarding the latest dismissal order. /clorenciana