MANILA, Philippines -- The Office of the Ombudsman has exonerated Manila Mayor Alfredo Lim and several members of the Manila City Government and the Manila Police District (MPD) from administrative liability in connection with the city's takeover of a slaughterhouse owned by the family of a Manila councilor.

In a 25-page decision, Graft Investigation and Prosecution Officer I Michelle Villabesa that all of the accused involved in the case filed by Jocelyn Alcoreza, sister of Manila First District Councilor Dennis Alcoreza and executive vice president of Dealco Farms Inc., should be cleared and discharged from the case for alleged conduct prejudicial to the best interest of the service for lack of evidence.

Aside from Lim, also absolved from the case were city government officials led by City Administrator Jesus Mari Marzan, City Legal Officer Renato de la Cruz, Chief of Staff Ricardo De Guzman, Veterinary Inspection Board Fransisco Co.

Villabesa also dismissed the charges leveled against several members of the MPD led by Police Senior Supt. Alejandro Gutierrez, Police Senior Inspectors Magno Magno, Olivia Sagaysay, Marcelo Reyes and Rodolfo Fajardo, SPO4 Adelaido Araneta, PO3 Raul Dagang, PO2 Ramon Guina, PO2 Juan, Police Supt. Rolando Miranda, PO1 Gilbeys Navoa, PO3 Joel Menpin, PO1 Fransisco, PO3 Sunga, PO3 Arroyo Jr. and PO1 Balagtas.

“Wherefore, the complaint against the respondents charging them with the administrative offense of Conduct Prejudicial to the Best Interest of the Service is hereby dismissed for lack of substantial evidence,” the decision said.

The slaughterhouse, reputed to be the city’s largest, services Metro Manila and Bulacan, Laguna, Batangas and Pampanga provinces. The city government ran the slaughterhouse until its administration was transferred to Dealco in 2001 by then Mayor Lito Atienza. Alcoreza ran under Atienza’s ticket in the 2007 elections.

In August 2007, the city government tried to take over the slaughterhouse because of a reported P25- million unpaid rent and real property taxes.

Dealco obtained a temporary restraining order from the Manila Regional Trial Court to stop the takeover. A compromise agreement was still valid, said Joyce, who claimed their tax payments were up-to-date.

In 2008, the Manila City Government took over the 22,000-square meter Vitas slaughterhouse leased out to Dealco Farms Inc. in October 1999 for 25 years.

City legal officer Renato de la Cruz said they rescinded Dealco’s lease contract because of alleged violations, like putting up a gym inside the establishment. It also reportedly operated an “unsanitary” wastewater facility.

De la Cruz also claimed the city government had yet to receive its one percent share in the gross sales of Dealco in 2006-2007. He said Dealco also misdeclared its earnings, declaring only P10-15 million when it actually earned P1.4 billion in 2006.

Violence, however, erupted Councilor Alcoreza and his sister Joyce, were bodily removed by policemen along with several employees when they refused to leave.

“Despite Dealco's acquiescence to vacate the area peacefully and its request that it be given a few days for the orderly removal of its movable assets and personal effects, the respondents still ousted Dealco's officers and staff through force and violence,” Jocelyn said in her complaint-affidavit.

“The City of Manila, through Respondent Mayor Lim entered the contract with Dealco in its private capacity. Thus, it should have sought relief from the court for any perceived breach of contract,” she added.

The respondents collectively denied the Dealco's claims that the company started to rehabilitate and modernize Vitas Slaughterhouse, paid its rent and fully complied with the terms and conditions of the contract.

The respondents admitted that they led the city and police officials in implementing Mayor Lim's E.O 24 but they denied that there were hundreds of police and city official during the takeover and even said that they did not used force and violence during the take over.

“Taking over the possession and operation of the slaughterhouse extra-judicially by the City is legally permitted as long as such right exists in the contract. Furthermore, the contract does not require judicial assessment before the City can effect the same,” the counter-affidavit of the respondents averred.

Villabesa, after carefully evaluating the statements of both parties, gave credence to the testimony of the respondents as she pointed out that the complainant lacks evidence to pin the government and police officials in the case.

She pointed out that Mayor Lim was just exercising the rights and remedies available to the City of Manila pursuant to the Contract of Lease and the Compromise Agreement for the protection of the city from loss of income and revenues against delinquent debtors and taxpayers.