Photo credit: Gov. ER Ejercito

Former Pagsanjan, Laguna Mayor Jeorge “ER” Ejercito Estregan is in hot water again, and this time, the Supreme Court (SC) has sealed the deal. The country’s highest court has upheld Ejercito’s graft conviction for awarding a contract—without public bidding—to an unlicensed insurance company, effectively violating the Anti-Graft and Corrupt Practices Act (RA 3019).

The Case That Brought Him Down

The issue started when the United Boatmen Association of Pagsanjan (UBAP) blew the whistle on Ejercito’s deal with First Rapids Care Ventures (FRCV), a company owned by Marilyn M. Bruel. The local government granted FRCV the authority to provide accident insurance for tourists and boatmen at the Pagsanjan Gorge Tourist Zone—without going through the required public bidding.

Turns out, FRCV wasn’t even a legitimate insurance provider. It lacked the proper certification from the Insurance Commission, and worse, it had only been registered with the Bureau of Internal Revenue (BIR) and the Department of Trade and Industry (DTI) a mere five days before sealing the deal with the local government. That raised serious red flags.

SC’s Verdict: GUILTY

After a legal battle that went from the Office of the Ombudsman to the Sandiganbayan and eventually to the Supreme Court, the ruling is now final: Ejercito and Bruel were found guilty of graft. They were each sentenced to up to eight years in prison and permanently banned from holding public office.

What Went Wrong?

Ejercito argued before the SC that FRCV was the only qualified service provider, so there was no need for public bidding. Bruel, on the other hand, claimed the deal wasn’t about insurance but rather a special service contract.

The SC didn’t buy their excuses. The court ruled that the contract was for insurance services, which falls under “goods” that must go through a proper bidding process under the Government Procurement Reform Act. The law aims to ensure fair competition and prevent favoritism in public contracts.

Instead of following the rules, Ejercito went for “negotiated procurement”—a method that allows direct contract awarding under special circumstances like emergencies or repeated failed biddings. But none of those conditions applied here, meaning the former mayor blatantly ignored the legal process.

A Clear Case of Favoritism?

The SC found that Ejercito deliberately bypassed the bidding process to benefit FRCV, despite knowing the company had zero credentials. He “purposely spared FRCV from the rigors of the procurement law,” the ruling stated.

Meanwhile, Bruel was convicted for misrepresenting FRCV’s qualifications, essentially scamming the system to land the contract. Her company wasn’t even supposed to be in the insurance business—it was registered with the BIR as a computer-related business!

Who Got Off the Hook?

Interestingly, the Sangguniang Bayan (municipal council) members, who were initially convicted, were acquitted. The SC ruled that there was no clear evidence proving they favored FRCV. While they did allow “negotiated procurement,” they never explicitly prohibited Ejercito from conducting a public bidding.

What’s Next for Ejercito?

With this conviction now final, Ejercito is barred from politics forever, adding to his long list of controversies. It’s a dramatic fall for the former mayor, who was once known for his flashy lifestyle and action-star persona. But as the SC has shown, even the biggest names in politics aren’t above the law.