Major Corruption Case Rocks Cebu City Government
The Office of the Ombudsman has filed formal criminal charges against eight Cebu City government officials and three private individuals involved in a P239.72 million overpayment for garbage collection and disposal services in 2021. The case has been elevated to the Sandiganbayan, with arrest warrants expected to be issued imminently.
Who Faces Charges and Potential Arrest
Among the prominent figures named in the formal indictment are city administrator Floro Casas Jr., city treasurer Mare Vae Fernandez-Reyes, and city accountant Jerome V. Ornopia. The list also includes department heads John Jigo G. Dacua (public services) and Grace M. Luardo-Silva (garbage collection and disposal), along with three inspection officers: Allen O. Ceballos, Romelito A. Datan, and Mark A. Ugbinar.
The three private individuals charged are connected with Docast Construction and General Supply and JJ&J Construction and General Supply. They are identified as Jayra Angelic M. Ruiz-Javier (managing officer), David Sevilles Javier (operations manager OIC), and Erika May S. Quino (encoder).
According to sources, arrest warrants from the anti-graft court are expected to be issued on Friday afternoon, November 28, 2025, or Monday, December 1. The Ombudsman's information, signed by Graft Investigation & Prosecution Officer II Carla M. Echaves-Gonzaga on October 2, reached Sandiganbayan on Sunday, November 24.
Nature of the Charges and Bail Conditions
The accused face two serious criminal charges: malversation of public funds under the Revised Penal Code and violation of the Graft and Corrupt Practices Act. The malversation charge carries no bail option, while bail is available for the corruption charge.
The indictment alleges that the accused consented to or permitted the private contractors to receive P239,728,280.62 through doctored, faulty, or incorrect billing. The corruption charge states that officials provided unwarranted benefits to Docast/JJ&J contractors while causing undue injury to the Cebu City Government.
How the Overpayment Occurred
The massive overpayment resulted from a joint venture agreement where the City Government paid contractors P1,800 per ton for garbage collection throughout the city. The waste was supposed to be disposed of at the Binaliw dumpsite operated by ARN Central Waste Management, Inc., which charges separate dumping fees.
Investigators found the overpayment occurred through various fraudulent practices including:
- Padding of garbage weight measurements
- Falsification of official documents
- Charging the city for its own labor and equipment
- Billing for barangay and City Hall vehicles
The flawed system enabled collusion and fraud between government officials and private contractors, resulting in the substantial financial loss to the city.
Previous Administrative Action
In a previous administrative ruling, the Ombudsman had ordered the dismissal of all eight government officials and employees in a March 14, 2024 resolution. Notably, Casas had resigned much earlier on November 24, 2021, following the death of then-mayor Edgardo Labella five days prior.
Breach of Public Trust
The charges emphasize that the accused government officials and employees had a duty to protect Cebu City Government funds and ensure payment of correct billing statements after proper verification, monitoring, and review. Instead, the indictment states they connived with private individuals to allow the two companies to take P239.72 million unlawfully and feloniously.
This case represents one of the most significant corruption allegations involving Cebu City government operations in recent years, highlighting systemic vulnerabilities in the city's garbage disposal contracting process.
