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After almost four years, money issues in the 2005 South East Asian Games have come back to hound the congressional bid of Cebu businessman Jonathan Guardo.
The Philippine Sports Commission PSC) filed charges of malversation of public funds against Guardo before the City Prosecutor's Office in Manila.
Guardo was accused of misappropriating and misusing P10 million, an amount intended for Cebu's hosting of the 23rd SEA Games from Nov. 27 to Dec. 5, 2005.
The businessman, in a separate interview, denied the charge and said sports organizers in Manila and Bacolod were also accused in the case.
Guardo was then chairman of the Cebu Southeast Asian Games Organizing committee (CEBU SOC).
He has to refund the entire P10 million, according to the recommendation of the Commission on Audit (COA) which said Guardo had full control of the public funds given by the PSC.
The complaint was filed by PSC lawyer Paul Vega on behalf of the commission on Sept. 25.
But the case was made public only yesterday when Cebu City Mayor Tomas Osmeña distributed copies to City Hall reporters.
The criminal complaint was based on a COA report, which showed that the CEBUSOC's liquidation was short by P1,929,768.47.
Of the P8,070,231.53 expenditures as shown in the liquidation report, only P700,000 was used for its intended purpose.
The misapplied public funds reached P7,370,231.53, said the COA.
Mayor Osmeña is planning to face Guardo in the south district congressional race in 2010.
?Let him answer that (charge) in court,? said the mayor.
?I'm not the judge The case is self explanatory,? he told reporters.
Guardo, a stalwart of the opposition in Cebu City, insisted that he did not misuse PSC funds.
He said the money was used for operations, including running the staff and buying food for volunteers.
He said he was optimistic the case would be eventually dismissed.
?Akong klarohon: Di raman ako'y gi-filan. Apil pud ang organizer sa Manila ug Bacolod (Let me be clear: I was not the only one charged. Included were organizers in Manila and Bacolod cities),? Guardo said.
The CEBUSOC was one of three organizing committees of the 23rd Southeast Asian Games. The others were the Philippine Southeast Asian Games Organizing Committee and the Bacolod Southeast Asian Games Organizing Committee.
President Gloria Macapagal-Arroyo issued Executive Order 126 on Sept. 16, 2002, ordering all agencies to coordinate for the successful hosting of the 23rd SEA Games in the country.
The government allocated P300 million for the hosting but only P250 million was eventually released. Of the amount, P10 million was given to the CEBUSOC for the ?repair/construction and refurbishing of facilities? in the cities of Mandaue, Cebu and Danao and the entire province.
Cebu hosted sports events: Dancesports, judo, karatedo, pencak silat and mountain bike racing.
A COA report attached to the PSC complaint showed that Guardo failed to liquidate the P10 million allocation. Under COA rules, liquidation must be made within 60 days upon completion of a project. Guardo was able to submit his liquidation on Jan. 21, 2009.
State auditors noticed some discrepancies.
Of the P10 million, liquidation documents amounted only to P8,070,231.53. An amount of P1,929,768.47 was not accounted for and subject to refund.
Of the P8 million, only P700,000 was spent on expenditures for their intended purpose. The liquidation for P700,000 also lacked required plans and program, detailed estimate, program of work, among others.
Expenses were liquidated for the purchase of T-shirts, payment of telephone bills, television and radio advertisement, taurpalins, printing jobs, rental sound system, gas, hotel accommodations and honorariums.
?Considering that CEBUSOC expended the fund transferred to them other than the sole and specific purpose cited, their officials may be liable for misapplication of public funds,? said Mario Lipana Philippine Sports Commission (PSC) Audit Team Leader.
In his complaint, PSC lawyer Vega said that a demand letter was sent to Guardo on Aug. 24, 2009 to immediately refund P9.3 million for illegal use of public funds and to submit proof of valid expenditures for the remaining P700,000.
The PSC also demanded CEBUSOC's Articles of Incorporators to prove it had juridical personality to transact business with PSC.
?Until this time, the demand to return the full amount of P10 million has not been complied with,? said Vega.
Failure to account for the amount was ?prima facie evidence that (Guardo) misappropriated, misused and malversed said amount to his benefit, thereby unjustly enriching himself at the expense and to the damage and prejudice of the Philippine Sports Commission, the Filipino people and the Republic of the Philippines,? said the complaint.
Guardo said he did not use the P10 million for infrastructure alone since part was for operations.
He said P10 million was not enough to build new venues for the games so the organizing committee decided to use existing venues in Cebu like the Cebu City Sports Complex and Mandaue City Sports complex.
Expenses included payment for food of the volunteers during the games.
Guardo said it was also unlikely for CEBUSOC to build a structure in just two months when the money was released on Sept. 14 and the events would be held on Nov. 27 to Dec. 5, 2005.
He said the he asked the PSC and was given approval to use the P10 million for operations. Bacolod organizers faced the same charges for failing to submit proof of valid expenditures.
Guardo criticized Mayor Osmeña for distributing copies of the criminal complaint to the press for political gain.
?Since he has nothing to be used to malign me, he will use it for black propaganda against me. He even used it against me last 2007 (elections),? he added.
Guardo ran for congressman in the south district and lost to incumbent Rep. Antonio Cuenco. He will try his luck again for the same position in next year?s election.
