NEWSFLASH

CEBU CITY MAYOR IN P12.3-M MISAPPROPRIATION RAPS

Cebu City, May 15, 2000 - The Office of the Ombudsman is investigating Mayor Alvin Garcia and other top City Hall officials in connection with the alleged misappropriation of P12 million from the Philippine Amusements and Gaming Corp. (Pagcor).

The anti-graft office said the city government violated Pagcor guidelines when it allocated more than P5 million of Pagcor funds for the Special Program for Employment of Students in 1996.

The city receives P3 million a month from Pagcor as its share from the operation of gambling casinos, but the state gaming agency has specific guidelines on how the money is to be spent by the host city.

The inquiry was initiated by associate graft investigator Marites Soon. after initial findings

"The Pagcor-funded projects totaling P12,306,373.35 appear not to fall under any of the projects authorized by Pagcor," Soon said in her final evaluation report approved by Cruz.

Among those facing administrative and criminal complaints aside from Garcia are Vice Mayor Renato Osmeña, councilors Ronald Cuenco, Laurito Malinao, Rogelio Osmeña, Ananias Ouano, Michael Rama, Felixberto Rosito and Fe Mantua-Ruiz.

Also included are former city councilors Jessie Aznar, Ruben de la Cerna, Christopher Alix, Manuel Concepcion, Rico Rey Holganza, Gabriel Leyson, Arnulfo Ravina and Charles Vailoces.