Dadivas Denies Allegations Over PHP402M Fund Use

By Felipe V. Celino

ROXAS CITY, Capiz – The Roxas City government has denied allegations that Mayor Ronnie Dadivas’ administration lacked authority from the Sangguniang Panlungsod (SP) to open a time deposit account.

Contrary to claims in a complaint filed before the Ombudsman, Roxas City Communications Group head Melvin Galagate said Mayor Dadivas was granted authority.

“The Roxas City government has already passed two separate resolutions allowing the city to have High-Yield Savings Accounts (HYSA) and Time Deposit Accounts,” Galagate said.

“This is in compliance with the audit observation report,” he added in a Facebook post.

Galagate noted that SP authorization is required under Section 21 of COA Circular No. 92-382, issued on July 3, 1992.

On March 11, 2025, news broke on social media and was later picked up by mainstream media that a criminal case for Technical Malversation and Violation of the Anti-Graft and Corrupt Practices Act, along with an administrative case for Conduct Prejudicial to the Best Interest of the Service, Dishonesty, Gross Misconduct, and Grave Abuse of Authority, was filed before the Office of the Ombudsman against Dadivas, City Treasurer Mimi Riano, and City Accountant Teresita Bidiones.

The complaint was filed by Carmen del Rosario-Andrade, sister of former Mayor Antonio del Rosario, who is running for mayor in the 2025 National and Local Elections.

The respondents have yet to receive a copy of the complaint.

However, the allegations center on the supposed unauthorized placement of city funds into time deposit accounts.

Dadivas dismissed the accusations as “absurd, baseless, and politically motivated.”

City Funds Remain Intact

According to Dadivas, the funds remain intact and are deposited in bank accounts under the Roxas City government.

He emphasized that the practice of placing idle funds in high-yield savings accounts has long been implemented, dating back to former Mayor Antonio del Rosario (1997-2007) and continued under Mayors Vicente Bermejo, Angel Alan Celino, and himself.

The 2023 COA Consolidated Financial Statement for Roxas City noted that such deposits required SP authorization.

In response, Dadivas requested the Sangguniang Panlungsod to ratify the time deposit placements.

In 2024, the SP passed:

• Resolution No. 201-24, authorizing the deposit of PHP119 million into 13 HYSA/TD accounts with Land Bank of the Philippines.
• Resolution No. 202-24, authorizing the deposit of PHP250 million into 12 HYSA/TD accounts with Development Bank of the Philippines.

These resolutions were passed in full compliance with COA recommendations.

“The city government has already fully rectified the practice, which has been done since the time of former Mayor Antonio del Rosario,” Dadivas said.

He also highlighted that COA issued an Unmodified Opinion on the Roxas City government’s 2024 financial report, indicating sound financial management.

Allegations of Fund Misuse

Earlier, Dadivas and two other city officials faced criminal and administrative charges over the alleged misuse of PHP402 million in public funds, based on COA’s 2023 Annual Audit Report.

Carmen Andrade, a Roxas City resident and accountant, accused Dadivas, Riano, and Bidiones of:

• Technical Malversation
• Violations of the Anti-Graft and Corrupt Practices Act
• Dishonesty, Gross Misconduct, Grave Abuse of Authority, and Conduct Prejudicial to the Best Interest of the Service

‘Improper Use of Funds’

The audit found that:

• PHP8 million from the Special Education Fund (SEF)—intended exclusively for education-related expenses—was placed in time deposits.
• PHP25 million from Trust Funds (TF)—designated for specific government projects—was similarly deposited.

COA emphasized that SEF and TF are not idle funds and should not have been diverted.

The unauthorized placements allegedly deprived beneficiaries and government programs of crucial resources.

Under the Revised Penal Code, technical malversation involves the misuse of public funds for purposes other than those for which they were appropriated.

Conviction carries imprisonment and fines.

COA recommended the immediate termination of the time deposits and the reallocation of funds to priority projects.

Potential Consequences

In addition to criminal charges, the officials face administrative sanctions, including possible dismissal from service.

Andrade has also called for their preventive suspension to protect the integrity of the case and preserve documents related to the transactions.

COA warned that unauthorized transactions:

• Undermine budgeting processes.
• Reduce government spending efficiency.
• Hinder development programs.