Ex-Davao Oriental mayor gets 6 to 10 years over anomalous P2M personal loan from municipality’s consultant

The Sandiganbayan has sentenced former Caraga, Davao Orienta, Mayor William Duma-an to 6 to 10 years in prison for receiving a P2-million personal loan from a financial consultancy firm hired by the municipality, in exchange for the release of its service fees.

In a recent 22-page decision, the court’s 3rd Division found Duma-an guilty of violation of Section 3(b) of the Anti-Graft and Corrupt Practices Act and perpetually disqualified him from holding public office.

The law prohibits officials from receiving any benefit in connection with transactions between the government and other parties in which they have the official capacity to intervene.

Prosecutors said Duma-an received the loan from RR Summit Consultants, Inc. chief executive officer Roseller Macayra in 2010.

In exchange, the mayor assured that he would facilitate the release of the 3% service fees, equivalent to P110 million, in favor of the company which served as consultant for the project to build and develop the Caraga Public Market, Terminal and Commercial Complex.

Duma-an admitted his receipt of the loan and the authenticity of the loan contract. He also admitted he was aware of the municipal government’s consultancy contract.

The court noted that the release of the first tranche of Duma-an’s loan took place on July 10, 2010, just a day after he wrote Macayra to promise that the municipality would “commit to pay your service fee… right after the release.”

It said it was irrelevant that the consultancy contract was signed by Duma-an’s predecessor Alicia Mori and not him.

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