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P5 million paid to Pampanga town mayor raises red flags in House probe

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PAMPANGA, Philippines – SAGIP Representative Rodante Marcoleta questioned an apparently anomalous P5 million payment by a corporation to suspended mayor of San Simon, Pampanga Abundio “Jun” Punsalan Jr., during a House committee on public accounts hearing on Tuesday, August 13.

The amount was turned over by Una Grande Tierra Development Corporation in two installments of P2.5 million each, one in cash and another through a cheque, described as a “regulatory fee” for business permits related to land reclassification. 

P5 million paid to Pampanga town mayor raises red flags in House probe

According to Loreto Santos, Punsalan’s chief of staff, he gave the initial P2.5 million cash directly to Punsalan, while the remaining P2.5 million was received by Santos as “collectibles” for his delivery service.

The municipal treasurer confirmed that Punsalan never remitted the amount to the municipality. Santos was not asked during the hearing whether he turned over the cheque to the municipal treasury.

“Yung sa regulatory fees, ‘di ako masyadong familiar doon. Pero yung P2.5 million cash, sinabihan ako at dineliver ko kay Mayor Punsalan,” Santos said. “My understanding is, it has something to do with the business permit dahil naka hold yung business permit.”

(As for the regulatory fees, I am not very familiar with that. But the P2.5 million in cash I was asked to deliver to Mayor Punsalan. My understanding, it has something to do with the business permit because the business permit was on hold.)

“And after the funds were released, I believe the business permit was released,” Santos added.

The House panel is investigating the allegations as stated in House Resolution 1503 filed by Senior Citizens Representative Rodolfo Ordañes on land transactions and other corrupt practices involving Punsalan and several members of the Sangguniang Bayan (SB), who all failed to attend the hearing.

Show cause orders were issued to Punsalan and members of the SB for skipping the hearing. Punsalan cited his belated birthday celebration in Cebu with his family as his excuse, while the SB did not provide a reason. A subpoena was issued to acting mayor Romanoel Santos for missing the probe due to an “upset stomach.”

The show cause orders and subpoenas were issued “for rendering a mockery of the hearing” due to their absences, Marcoleta said.

Marcoleta also revealed a January 13, 2020 letter requiring business owners to confirm the land reclassification with Punsalan which involved converting agricultural land to non-agricultural use for 18 establishments in San Simon’s industrial area.

“All establishments had to verify reclassification with the mayor. Otherwise, their business permits would not be issued,” Marcoleta said in a mix of Filipino and English.

Marcoleta assailed Punsalan for enforcing strict reclassification requirements for others while his own resort in Barangay San Miguel was built on agricultural land without undergoing the same process. 

PUNSALAN’S RESORT. An unfinished structure of a resort in Barangay San Miguel, San Simon, owned by Mayor Jun Punsalan, was shown in a House panel hearing on August 13, 2024. Screenshot via House of Representative Facebook page

Marcoleta showed the unfinished structure of Punsalan’s resort, where the latter celebrated his victory after winning the mayoralty race, and questioned how his property was constructed on agricultural land.

Municipal engineer Benigno Bonus also confirmed that the land was not reclassified.

Punsalan was suspended last June 18 by the provincial board through the recommendation of Pampanga Governor Dennis Pineda due to alleged gross neglect of duty, abuse of authority, gross misconduct, and violation of Republic Act 3019 or the Anti-Graft and Corrupt Practices Act. The 60-day suspension will end on August 17.

Pampanga board member Ananias Canlas Jr. said that an ongoing administrative case before the Sangguniang Panlalawigan will address the new revelations, including the cash payments to Punsalan. – Rappler.com


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