Republic of the PhilippinesSANDIGANBAYAN

Quezon City

THIRD DIVISION

PEOPLE OF THE PHILIPPINES,Plaintiff,

SB-15-CRM-0 130Malversation, Article 217, RPCSB-15-CRM-0 131Viol. of Section 3 (e), R.A. No. 3019

ANGEL V. PELIGLORIO, JR., ET AL.,Accused.

The following matters were taken up during the Pre-trial hearing/s held on

August 15, 2016 and January 25, 2017, pursuant to Section 1, Rule 118 of the

Revised Rules of Criminal Procedure:

IPLEA BARGAINING

II

STIPULATIONS OF FACT

Peliglorio, Jr. (Peliglorio, Jr.) is a public officer

Municipality of Mariveles;

being the Mayor ~

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2. That accused Peliglorio, Jr. admits his personal identity in the Information

filed in criminal cases SB-15-CRM-0130-0131.

3. That on March 22, 2007, the Municipality of Mariveles through accused

Peliglorio, Jr. contracted a loan with the Union Bank of the Philippines in the

amount ofP 120,000,000.00.

4. The Landbank of the Philippines was designated as the trustee of the loan

proceeds amounting to P 120,000,000.00.

1. That accused Cedric Lee admits his personal identity in the Information

filed in criminal cases SB-15-CRM-0 130-0 131.

2. That Izumo Contractors Inc. entered into a contract with the Municipality

of Mariveles to construct the Mariveles Public Market! Arcade.

3. That on March 29, 2007, the Landbank of the Philippines released the

requested amount ofP 23,470,500 to Izumo Contractors, Inc.

"A" Original Copy of the Complaint-Affidavit of Dr. Jesse I.Concepcion dated 21 October 2009 (11pages)

"B" Loan Agreement executed on March 22, 2007 between theMunicipal Government of Mariveles and Union Bank of thePhilippines in the amount ofPI20,000,000.00 (15 pages)

"C" Deed of Undertaking To Mortgage executed on March 22, 2007between the Municipal Government of Mariveles and UnionBank of the Philippines in the amount of PI20,000,000.00 (3pages)

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2007 between the Municipal Government of Mariveles andUnion Bank of the Philippines in the amount of P120,000,000.00(3 pages)

"E" Certified True Copy of the Trust Agreement entered on March22, 2007 between the Municipal Government of Mariveles,Landbank of the Philippines and Union Bank of the Philippinesconcerning the P120,000,000.00 loan (29 pages)

"F" Certified True Copy of the Deed of Assignment of Deposit ofInternal Revenue Allotment entered on 22 March 2007 betweenthe Municipal Government of Mariveles and Landbank of thePhilippines concerning the P120,000,000.00 loan (7 pages)

"G" Certified Photocopy of the Letter dated March 26, 2007addressed to Angel V. Peliglorio, Jr. from Cedric C. Lee,President/CEO requesting for the release ofP23,470,500.00

"H" Certified True Copy of the Letter dated March 27, 2007addressed to Landbank of the Philippines, Attention: Mr.Eduardo B. Chaves, Vice President/Trust Officer, Trust BankingGroup from Angel V. Peliglorio, Jr., approved by Union Bank ofthe Philippines authorizing the release/payment ofP23,470,500.00 to Izumo Contractors, Inc.

"I" Certified True Copy of the LBP Fund Transfer No. 33226 datedMarch 29, 2007 in the amount of P19,442,267.48 to IzumoContractors, Inc.

"J" Certified True Copy of the LBP Fund Transfer No. 33226 datedMarch 29,2007 in the amount ofP1,033,781.25

"K" Certification dated January 10, 2008 issued by Emilio M.Cabigao, Department Manager II, LBP Mariveles Branch,Mariveles Bataan certifying the deduction of a total amount ofP14,056,084.43 from the Internal Revenue Allotment of theMunicipality of Mariveles

"L" Original Copy of the Certification dated September 21, 2015issued by Justino P. Zamora, Acting Branch Head, LBPMariveles Branch, Mariveles Bataan

"M" Certified True Copy of the Certification dated January 8, 2008issued by Onofre B. Diuco

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"Q" Certified Photocopy from the Original Oath of Office as Mayorof Angel Peliglorio, Jr.

"R to R-7" Certified True Copy of the Landbank of the Philippines BankStatement for the Period Covering May 31,2007 to June 30, 2007for Current Acct. No. 2152-1000-11 (7 pages)

"R-7-a" Entry showing the amount of 403,719.48 in page 7 of the BankStatement for the Period Covering May 31,2007 to June 30, 2007

"R-7-b" Entry showing the amount of 18,516.27 in page 7 of the BankStatement for the Period Covering May 31,2007 to June 30, 2007

"S to S-12" Certified True Copy of the Bank Statement for the PeriodCovering April 30, 2007 to May 31,2007 for Current Acct. No.2152-1000-11 (12 pages)

"S-10-a" Entry showing the amount of 1,270,036.68 in page 10 of theBank Statement for the Period Covering April 30, 2007 to May31,2007 for Current Acct. No. 2152-1000-11

"T to T-3" Certified True Copy of the Bank Statement for the PeriodCovering November 30, 2007 to December 31, 2007 for CurrentAcct. No. 2152-1000-11 consisting of3 pages

"T-l" Entry showing the amount of 5,500,000.00 in page 1 of the BankStatement for the Period Covering November 30, 2007 toDecember 31, 2007 for Current Acct. No. 2152-1000-11

"U" Certified Copy of the Photocopy Landbank of the PhilippinesDebit Advice dated May 24, 2007 for Current Acct. No. 2152-1000-11 in the amount ofP4,415,373.91

"V" Certified Copy of the Photocopy of the Landbank of thePhilippines Debit Advice dated May 24, 2007 for Current Acct.No. 2152-1000-11 in the amount ofPl,270,036.68

Certified Copy of the Photocopy of the Landbank of the"w" Philippines Debit Advice dated June 8, 2007 for Current Acct.

No. 2152-1000-11 in the amount ofP2,448,438.09

"X" Certified Copy of the Photocopy of the Landbank of thePhilippines Debit Advice dated June 27, 2007 for Current Acct.No. 2152-1000-11 in the amount ofP403,719.48

"Y" Certified Copy of the Photocopy of the Landbank of thePhilippines Debit Advice dated June 28, 2007 for Current Acct.No. 2152-1000-11 in the amount OfPI8'516.~

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Certified Copy of the Photocopy of the Landbank of thePhilippines Bank Statement for the Period Covering November30, 2007 to December 31, 2007 for Current Acct. No. 2152-1000-11

Entry showing the amount of P5,500,000.00 in the Landbank ofthe Philippines Bank Statement for the Period CoveringNovember 30, 2007 to December 31, 2007 for Current Acct. No.2152-1000-11

Certified Copy of the Photocopy of the Landbank Memorandumdated Dec. 12, 2007 addressed to the Head Mariveles Branchwith subject: Deed of Assignment of Deposit of Internal RevenueAllotment

Certified Copy of the Photocopy of the Letter dated 12 December2007 addressed to Municipal Mayor Jesse Concepcion fromSusan Halili, Bank Executive Officer, Land Bank of thePhilippines

Certified Copy of the Photocopy of the letter dated 25 April 2007addressed to the Municipal Government of Mariveles Attn: Hon.Angel V. Peliglorio, Jr. signed by Eduardo Chaves, VicePresident/Trust Officer and Susan Halili, Land Bank of thePhilippines

Original Copy of the Letter dated March 1, 2016 from DaniloCejalvo, Municipal Accountant of Mariveles

Certified True Copy of the Annual Audit Report of theMunicipality of Mariveles for the Year Ended December 31,2007

FF Affidavit of Lamelita Aquino and Camilo G. Sanchez, Landbank ofthe Philippines

GG Certification from Union Bank As To The Unavailability of theOriginal Copies of the Prosecution's Documentary Exhibits markedas Exhibits "B", "C"and "D"

HH Certification from Municipality of Mariveles As To TheUnavailability of the Original Copies of the Prosecution'sDocumentary Exhibits marked as Exhibits "B", "C"and "D"

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II Certification from the Regional Trial Court, Mariveles, Bataan AsTo The Unavailability of the Original Copies of the Prosecution'sDocumentary Exhibits marked as Exhibits "B", "C"and "D"

JJ Certification from the Landbank of the Philippines as to theUnavailability of Prosecution Exhibits "U" "V" "W" "X" "Y", , , , ,"Z", "A", "BB" and "CC"

KK Journal Entry Voucher concerning deduction of IRA of theMunicipality of Mariveles in 2007 to pay P120,000,000.00 loanwith Union Bank

LL Subsidiary Ledger concerning deduction of IRA of the MunicipalityofMariveles in 2007 to pay P120,000,000.00 loan with Union Bank

1 Loan Agreement (Exhibit B of prosecution) subject to thepresentation of the original copy of the document by the prosecution

2 Deed of Undertaking To Mortgage executed on March 22, 2007between the Municipal Government of Mariveles and Union Bank ofthe Philippines in the amount of P120,000,000.00 (3 pages)(ExhibitC of the prosecution) subject to the presentation of the originaldocument of the prosecution;

3 Deed of Assignment of Rental Income from the MunicipalGovernment to the Union Bank of the Philippines (Exhibit D of theprosecution) subject to the presentation of the original document bythe prosecution;

4 Certified True Copy of the Trust Agreement entered on March 22,2007 between the Municipal Government of Mariveles, Landbankof the Philippines and Union Bank of the Philippines concerning theP120,000,000.00 loan (29 pages)Exhibit E of the prosecution,subject to the presentation of the presentation of the originaldocument by the prosecution;

5 Certified True Copy of the Deed of Assignment of Deposit ofInternal Revenue Allotment entered on 22 March 2007 between theMunicipal Government of Mariveles and Landbank of thePhilippines concerning the P120,000,000.00 loan (7 pages)(ExhibitF of the prosecution subject to the presentation of the presentationofthe originaldocumentbytheprosecutn

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6 Certified Photocopy of the Letter dated March 26, 2007 addressed toAngel V. Peliglorio, Jr. from Cedric C. Lee, President/CEOrequesting for the release of P23,470,500.00(Exhibit G of theprosecution) subject to the presentation of the presentation of theoriginal document by the prosecution;

7 Certified True Copy of the Letter dated March 27, 2007 addressed toLandbank of the Philippines, Attention: Mr. Eduardo B. Chaves,Vice President/Trust Officer, Trust Banking Group from Angel V.Peliglorio, Jr., approved by Union Bank of the Philippinesauthorizing the release/payment of P23,470,500.00 to IzumoContractors, Inc. (Exhibit H of the prosecution) subject to thepresentation of the presentation of the original document by theprosecution;

8 Certified True Copy of the LBP Fund Transfer No. 33226 datedMarch 29, 2007 in the amount of PI9,442,267.48 to IzumoContractors, Inc. (Exhibit I of the prosecution) subject to thepresentation of the presentation of the original document by theprosecution;

9 Certified True Copy of the LBP Fund Transfer No. 33226 datedMarch 29, 2007 in the amount of Pl,033,781.25 (Exhibit J of theProsecution) subject to the presentation of the presentation of theoriginal document by the prosecution;

10 Original Copy of the Certification dated September 21, 2015 issuedby Justino P. Zamora, Acting Branch Head, LBP Mariveles Branch,Mariveles Bataan (Exhibit L of the prosecution)

11 Certified True Copy of the Certification dated January 8, 2008issued by Onofre B. Diuco (Exhibit M of the prosecution)

12 Letter of former Governor Enrique T. Garcia Jr., and JesseConcepcion addressed to Victor Valdepenas of Union Bank of thePhilippines requesting stoppage of the release of the loan to theMunicipality ofMariveles date May 25, 2007;

13 Resolution No. 084-A Series of 2007, Rescinding the Memorandumof Agreement between the Municipality of Mariveles and thePhilippine Reclamation Authority;

14 Resolution No. 036-2009, Authorizing Mayor Jesse Concepcion tonegotiate, enter into Compromise Agreement with the Land Bank ofthe Philippines and Union Bank;

15 Resolution no. 044-2009 Authorizing Municipality of Mariveles toenter into a loan agreement with the Land Bank of the Philippinesfortake-outloan/7

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16 Resolution No, 044-2009 Authorizing the Municipality of Mariveles,through Mayor Jesse Concepcion to enter into another LoanAgreement with the Land Bank of the Philippines and for the holdout of the outstanding interest of the Municipality's obligation withUnion Bank of the Philippines;

17 Resolution No. 046-2009 Authorizing the Municipality of Marivelesthrough Mayor Concepcion to enter into another loan agreementwith the Land Bank and the Union Bank of the Philippines;

18 Undated Omnibus Term Loan agreement between the Land Bank ofthe Philippines and the Municipality ofMariveles;

19 Statement of Supplemental Appropriation from the MunicipalBudget officer date December 4, 2008;

20 Copy of Amended complaint filed in the Regional Trial Court ofBataan, Branch 4, between the Municipality of Mariveles versusLand Bank of the Philippines;

21 Transcript of Stenographic Notes of the case the Regional TrialCourt of Bataan Branch 4, between the Municipality of Marivelesand the Land Bank and Union Bank of the Philippines;

22 Resolution No. 084-S series of 2007 Rescinding the LoanAgreement between the Municipality of Mariveles, and Union Bankof the Philippines;

23 Letter to Victor Valdepenas, COO, Union Bank, dated June 6, 2007requesting for explanation regarding the suspension of the release ofthe funds of the loan of the Municipality of Mariveles.

24 Follow-up letter addressed to Mr.Victor Valdepenas dated June 12,2007 and demanding explanation relative to the suspension of therelease of the loan of the Municipality of Mariveles;

25 Compromise Agreement entered into by the Municipality ofMariveles and the Union Bank of the Philippines dated 2 September2009;

26 Statement of Statutory and Contractual Obligations for the year 2007of the Municipality of Mariveles, prepared by the Municipal Budgetofficer and signed by the Angel Peliglorio Jr.;

27 Report consisting of four (4) page, with letterhead Paguilaw andForensic Document Offices, Scientific Handwriting ExaminationReport;

28 A letter addressed to the Union Bank of the of the Philippinesregarding request for loan release of 120 Million term loan sent byMunicipalgovernmentofMarivelesconsistingoffive (5)p//

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28-b Signature appearing on top of the type written name Hon. Angel V.Peliglorio Jr.

28-c Signature on top of the type written name Hon. Angel V. Peliglorio,Jr.

28-d Signature on top of the type written name Hon. Angel V. Peliglorio,Jr.

28-e Signature on top of the type written name Hon. Angel V. Peliglorio,Jr.

29-a Enlarged photograph of the alleged signature of the Angel V.Peliglorio, Jr.;

30 Resolution No. 023-B S. 2007 (Appropriation Ordinance No. 14 ofthe Sangguniang Bayan of Mariveles. This was erroneouslymarked as Exhibit 25 also during the Preliminary Conference ofJune 1,2016;

1 Memorandum of Agreement between Municipal Government ofMariveles and Izumo Contractors, Inc.

2 Supplemental Memorandum of Agreement between MunicipalGovernment of Mariveles and Izumo Contractors, Inc.

3 Acknowledgment Receipt signed by the Municipal Government ofMariveles acknowledging receipt of the of the hydrological study,geological study, architectural design, detailed engineering design,soil sampling, topography profiling, bankable comprehensivefeasibilitystu/!

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Whether accused Peliglorio, Jr. is guilty of Malversation underArticle 217 of the Revised Penal Code when he requested andauthorized the release of public funds representing the bank loanproceeds of the Municipality of Mariveles amounting toP23,470,500.00 to Izumo Contractors Inc., represented by accusedCedric Lee, as advance payment thereto for the construction ofMariveles Public Market, without procedural safeguards, guaranteeof performance and in violation of the Commission on Audit Rules,and which construction never commenced thereby consenting orpermitting the taking thereto by accused Lee of the said amount.

Whether accused Peliglorio, Jr is guilty of violating Section 3 (e) RA3019 when he requested and authorized the release of the bank loanproceeds of the Municipality of Mariveles to Izumo Contractors Inc.,represented by accused Cedric Lee, as advance payment for theconstruction of Mariveles Public Market without proceduralsafeguards, guarantee of performance and in violation of theCommission on Audit Rules, which construction never commenced,and which resulted to the loss of PI4,056,084.43 from theMunicipality's public funds.

Whether accused Cedric Lee, President and Chief Executive Officerof Izumo Contractors, Inc. conspired with accused Peliglorio, Jr. intaking the amount P 23,470,500.00 from the Municipality ofMariveles.

Whether accused Cedric Lee, President and Chief Executive Officerof Izumo Contractors, is guilty of Malversation under Article 217 ofthe Revised Penal Code when he requested for advance payment ofP23,470,500.00 from the Municipality of Mariveles through accusedPeliglorio, Jr., for the construction of Mariveles Public Market, butupon receipt of the said amount never commenced the constructionof the said building and misappropriated said amount for his own useand benefit.

Whether accused Cedric Lee, President and Chief Executive Officerof Izumo Contractors, is guilty of violation of Section 3 (e ) ofRepublic Act 3019 when he requested for advance payment ofP23,470,500.00 from the Municipality of Mariveles through accusedPeliglorio, Jr., for the construction of Mariveles Public Market, butupon receipt of the said amount never commenced the constructionof the said building which resulted to the loss of P 14,056,084.43from the Municipality's public fu~

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1. Whether or not the accused Angel Peliglorio Jr., executed thealleged authorization and request for the release of the loan to IzumoContractors, Inc;

2. Whether or not Land Bank of the Philippines and Union Bank isauthorized to release the loan of the Municipality of Mariveles, onthe basis of a mere request allegedly coming from the accused AngelPeliglorio, Jr., pursuant to the terms of the agreements entered intowith the Municipality ofMariveles;

3. Whether or not land Bank of the Philippines or Union Bank of thePhilippines informed the Municipality of Mariveles, prior to therelease of a portion of the amount of the loan to Izumo contractors,Inc., or anytime immediately thereafter, prior to the filing of the caseagainst them by the Municipality of Mariveles.

Records Custodian or Representative from Union Bank of thePhilippines

Mario S. Sabino, Jr., Manager/Trust Legal officer, Trust BankingGroup, Landbank of the Philippines

Josephine G. Cervero, SVP & Trust Officer, Trust Banking Group,Landbank of the Philippines

Atty. Minerva A. Jimenez-Inez, Clerk of Court V/or Represe,/?

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8. Emilio M. Cabigao, Landbank of the Philippines, Mariveles Branch orRepresentative

9. Justino P. Zamora, Acting Branch Head, Landbank of the Philippines,Mariveles Branch or Representative from the said bank

10. Onofre B. Diuco, Municipal Treasurer, Municipality of Mariveles orRepresentative

11. Felicidad Cruz, OIC-Municipal Treasurer, Municipality of Marivelesor Representative

12. Carlyn Marie A. Manalo, Human Resource Management Officer orRepresentative from the Human Resource Management Office,Municipality of Mariveles

13. Representative from the Office of the Municipal Treasurer,Municipality of Mariveles

14 Danilo Cejalvo, Accountant, Municipality of Mariveles orRepresentative from the Office of the Municipal Accountant

15 Records Officer or Representative from the Office of the Ombudsman,Agham

16. Guia C. Lim, Executive Vice President, Union Bank of the Philippinesor Representative

17. Rafael Oliver Abano, Jr., First Vice President, Union Bank of thePhilippines or Representative

19. Current Branch Manager, Landbank of the Philippines, Mariveles,Bataan

20. State Auditor, Commission on Audit covering the Municipality ofMariveles, Bataan

21. Karen Santos, State Auditor III, Commission on Audit, Province ofBataan

22. Sangguniang Bayan Secretary of the Municipality of Mariveles or arepresentative from that Office

23. Susan dR.Halili, Bank Executive Officer, Landbank of the Philippinesor Representative

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2. Atty. Desiderio A. Pagui, Pagui Law & Forensic DocumentAssociates, 283, Ermin Garcia St., Bgy. Silangan, Cubao, QuezonCity;

4. President of the Land Bank of the Philippines, LandBank Plaza,M.H. Del Pilar, Cor Dr. J. Quintos St., Malate, Manila;

Notary Public or representative of the Notarial Section of Manila toidentify Memorandum and Supplemental Memorandum.

Concerned staff of Izumo who delivered the hydrological study,geological study, architectural design, detailed engineering design,soil sampling, topography profiling, bankable comprehensivefeasibility study to the Municipal Government ofMariveles.

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The Plaintiff will need at least Twenty Five Trial dates (25) to present itsdocumentary and testimonial evidence.

Accused Peliglorio, Jr. needs twenty (20) trial dates to present their documentaryand testimonial evidence.

Accused Cedric Lee Jr. needs at least five (5) trial dates to present theirdocumentary and testimonial evidence.

ACCORDINGLY, the Pre-trial proceedings in these cases are terminated

and the initial presentation of prosecution evidence is set on January 30 and 31,

2017; February 21 and 22, 2017; March 22 and 23, 2017; April 26 and 27,

2017; May 24 and 25, 2017; June 26 and 27, 2017; July 24 and 25, 2017;

August 22 and 23,2017; and September 20 and 21, 2017, all at 1:30 o'clock in

the afternoon.

In the meantime, the parties are given a period of five (5) days from notice

hereof within which to inform this Court of any correction in the listing and

description of their respective documentary evidence and witnesses, to inform this

Court of any additional evidence that they may want to be included in this Pre-trial

Order, and to file their comments, if any.

Thereafter, this Pre-trial Order shall bind the parties, limit the trial to matters

not disposed of and control the course of the action during the trial, unless

otherwise modified by the Court to prevent manifest injustice.

SO ORDERED. ~

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ITO R. FERNANDEZAssociate Justice