By RUBEN VELORIA | Subic Bay Freeport
THE Office of the Ombudsman has dismissed criminal complaints against current and former officials of the Subic Bay Metropolitan Authority (SBMA) and other private individuals in connection with the takeover of the management of a hotel in this free port.
Ombudsman Conchita Carpio Morales approved the dismissal of criminal complaints filed by the Subic-based company Freeport Elite Resort, Inc. (FERI) against former SBMA Chairman Roberto Garcia, former SBMA Deputy Administrator for Legal Affairs Randy Escolango, former SBMA Legal Department manager Von Rodriguez, former SBMA Law Enforcement Department chief Orlando Maddela, and current SBMA Deputy Administrator for Administration Ruel John Kabigting.
FERI owns and operates Ocean Hotel, now known as Leciel Hotel located at Subic’s Central Business District.

The case stemmed from a management dispute in 2015. Kang Il Chan, a majority stockholder of FERI, petitioned the Regional Trial Court Branch 72 in Olongapo City for accounting and inspection of financial and transfer records, and for the annulment of one Cho Chan Choon’s subscription payments for using company funds.
The court on March 16, 2015, rendered a decision in favor of Kang, whose group later took management control of the hotel. The decision of the RTC, prompted FERI director Jo Kwang Rae to file before the Office of the Ombudsman complaints against SBMA officials and Kang’s group, who allegedly conspired for the hotel takeover.
However, the Ombudsman dismissed the complaint, pointing out that the allegation of conspiracy between SBMA officials and Kwang’s group does not establish it as a fact since the statements of the witnesses presented by Cho were not sufficient to establish the existence of conspiracy, but were devoid of details.
