San Simon, Pampanga Mayor Abundio ‘JP’ Punsalan Jr. pleaded not guilty to graft and extortion charges before the Sandiganbayan, two months after he was entrapped by authorities at a restaurant in Clark Freeport while allegedly receiving a bag containing around P30 million.
Punsalan entered his plea as the charges were read to him during his arraignment before the anti-graft court’s Seventh Division on Wednesday.
A Sandiganbayan order dated Sept. 9 showed that the mayor surrendered and posted cash bonds of P90,000 for each case filed against him for violating Republic Act No. 3019, or the Anti-Graft and Corrupt Practices Act, and Article 293 of the Revised Penal Code (robbery by means of extortion).
The complaint against him stemmed from the claim of San Simon-based Real Steel Corporation that the mayor demanded P80 million from the company in exchange for not overturning Municipal Ordinance No. 24-0025, which granted tax incentives to the firm.
The demand was allegedly accompanied by threats that Real Steel’s incentives would be revoked if payment was not made.
Reports also showed that Real Steel filed an urgent motion before the Office of the Ombudsman to suspend Punsalan in connection with an administrative case for grave misconduct and serious dishonesty. The motion remains pending.
The company likewise lodged a separate administrative case against the mayor before the Pampanga provincial board.