Pampanga town mayor faces graft, conflict of interest raps over alleged link to steel firm

MANILA (UPDATED) — Magalang, Pampanga Mayor Malu Paras-Lacson is facing graft and conflict of interest complaints over her alleged link to a steel firm. United Pilipino Against Crime and Corruption (UPACC) founder Pyra Lucas and private individual Jan Job Elumbaring filed the complaints against Paras-Lacson and other municipal officials before the Office of the Ombudsman on Thursday.

In addition, UPACC alleged that Paras-Lacson violated the Local Government Code and the Revised Penal Code.

According to Lucas, Paras-Lacson’s manpower agency supposedly illegally recruited about 200 employees to Chuangxing Steel Inc., which she claimed the mayor may be a part-owner.

“Sina Mayora Malu Lacson at kanyang buong pamilya ang nagsu-supply ng manpower du’n sa Chuangxing Steel Corporation na ang kanilang manpower [agency] ay nagngangalang Kingsmen Manpower Agency, which is conflict of interest dahil siya ang sitting mayor,” Lucas told reporters after the filing of complaints.

The complainant said the manpower agency has no license to recruit nor a certification from the Department of Labor and Employment – Central Luzon.

They also alleged that the firm lacked safety measures for employees and that some have been injured but were not given compensation.

Lucas also said that firm is sitting on supposedly illegally reclassified land. She explained that the land was for agrarian use, and there was no clearance to transfer and conversion order from the Department of Agrarian Reform.

“Bigla nilang ginawang pagawaan ng bakal at mind you, ito ay isa ring residential area,” she said.

Lucas also accused the mayor of unexplained wealth as the latter’s statement of assets, liabilities, and net worth is purportedly at P150 million, which, the complainant said, does not match her salary.

Lucas was asked how much the SALN grew, to which she replied: “Siguro 10 times in a span of three years.”

UPACC claimed that Chuangxing Steel Inc. utilized hazardous chemicals, which affect the health of nearby residents. It added that the company allegedly melted coins which were mixed with the steel, a violation of the law. 

The complainants pushed for the mayor’s suspension while the investigation is ongoing.

The steel company, Lucas said, is currently not operating.

DOLE cancels work permits of 6 Chinese nationals from raided Pampanga steel plant

In July, the National Bureau of Investigation and the Presidential Anti-Organized Crime Commission seized “radioactive-bearing and structurally substandard finished steel products, contaminated production equipment, and other radioactive industrial materials” by Chuangxing Steel Inc.

It was earlier discovered that the steel bars from the nine-story building that collapsed in Angeles, Pampanga were from Chuangxing Steel Inc.

Meanwhile, Paras-Lacson denied conflict of interest allegations. 

”Mayor Lacson and her husband fully divested all their interests in Kingsmen Manpower Services in May 2022, prior to her assumption of office as Municipal Mayor,” she said in a statement. 

“Furthermore, Kingsmen has no active operations and maintains no contract or manpower deployment with Chuanxing Steel,” she added. 

Paras-Lacson said she will respond “at the proper time and through appropriate legal forum” once she receives a copy of the complaint.

The hearing is set to continue on Sept. 11, when Romualdez’s doctors are expected to return to explain his health condition.

Dr. Rosalio Torres, the team manager of Cardinal Santos Medical Center, testified earlier in the day that Romualdez is considered at high risk of heart attack and transferring him could compromise the critical “golden hour” — the window of time immediately after a symptom when medical intervention is essential to prevent permanent heart muscle damage or death.