Se Roxas City May 12, 2024 His Excellency, RODRIGO ROA DUTERTE President Republic of the Philippines Manila Thru: Hon, Eduardo Aflo Secretary Department of the Interior and Local Government DILG NAPOLCOM Center EDSA comer Quezon Avenue Quezon City Sir: | am filing an ADMINISTRATIVE CASE against RONNIE DADIVAS, incumbent City Mayor, Roxas City, Capiz for gross negligence and dereliction of official duties THE FACTS Respondent ATTY. RONNIE DADIVAS is the incumbent City Mayor of Roxas City, Capiz, having assumed the position on June 30, 2019. He holds office at the Roxas City Hell, Arzobispo Street, Roxas City, where he may be served with notices and other legal processes by the Honorable Office. Complainant is a private citizen and can be served with notices and other legal processes by the Honorable Office at his residential address at Mabini Street, Roxas City. On or about January 2020, one Patrocenio Calvez Chiyuto, Jr. started operation of @ Ponei Scheme in Roxas City and the entire Province of Capiz. He established his office at Barangay Punta Tabuc, Roxas City under the name, “CHIYUTO CREATIVE WEALTH DOCUMENT FACILITATION SERVICES", or “CCWDFS' for short. He began recrulting his “uplines” from among former classmates in the elementary grades at the Presiden! Manuel Roxas Memorial School ("PMRMS') in Roxas City. These “uplines’ began offering a “double your money” investment scheme to people in Roxas City and Capiz. CCWDFS heavily relied on social media platform to offer their investment scheme fo te public by availing of their so-called “Double-Your-Money’ in either 4 day, 30 days or 45, days depending on the result of the spin of a roulette wheel. As proof of investment, CCWDFS issued vouchers to the investors which would be the basis of the amount they are entitled during the pay.out. It did not take long before Chiyuto's investment scheme Started to draw hordes of “investors” from among the residents of Roxas City and Capiz As it grew, the operations also expanded its reach to the provinces of Iloilo, Aktan and ‘Antique imposed restriction on mass gathering, hordes of people were seen daily outside of the office of Mr. Chiyuto in Brgy. Cagay, Roxas City supposedly to invest their money. The huge mass gathering of people in the said premises was a daily occurrence. The traffic auxiliaries of the City Government of Roxas were seen helping tase the traffic because of volume of people lining up in the office of Mr. Chiyuto. Despite the government Scanned with CamScannercaught the attention of te Secuntion a Lc meeud any advinory’ diated August 11, 2020 warning the public Hat tie rot nngictored wath tho Cowwniaian ave had nat haart vwnuned gerondary i prentact to the publi Me Chih (SEC) Dusinoss wa conse to offer and soll mve ws Operabons nat deal vate poston entra ng Pitas (ISP)! Anand ts re ening te he pubic The Banako § about COWES « uinauttarized ae af NEP tages on i Chiyuto after iiseavery and social medtn poets lee against laventing 9 On Oetobor 22, 2020, SEC rnitorated ite warning’ ta the Chiyuto’s company, Qwas conducted apenly and publicly, with hie “uphr mont scheme through their social radia accounts Jocat radio ntation, Basskog Radyo Meza The operation of CCWDF propagating bis patently Mogat an specially Facebook Twas also promoted by A 402 mz RONNIE DADIVAS NEVER ACTED ON DESPITE THE FOREGOING, CITY MAYOR OPERATIONS OF MR, CHIYUTO TO THE ILLEGAL "DOUBLE-YOUR-MONEY" PROTECT THE INTERESTS OF HIS CONSTITUENTS WHO WERE ENTICED 10 INVEST HUGE AMOUNTS OF MONEY. AS A LAWYER, MAYOR DADIVAS OUGHT 70 KNOW THAT THE OPERATIONS OF MR. CHIYUTO WERE ILLEGAL PER SE Throughout is operations, from when il began soliciting invostment, CEWDFS operitot tahoat » business permit from the LGU Roxas City which is headed by Respondent SADIVAS. tis beyond cavil thal all business establishmonts must secure the appropriate business permit before they can start doing business. ne LGU Roxas City Th 1 Revenue (BIR) permit to can be gleaned from the "10 wit indeed, Chiyuto could not have oblain a Business Permit from th pecause he lacked the SEC registration and Bureau of Intornal operate an investment solicitation and taking business. This ether documents that he circulated to his “uplines” to be prosentod to “invostor ination 4. BIR Certificate of Registration for *Chiyuto Creative Wealth Document Fa Services’ issued on November 24, 2020; (Annex "A") and 2. SEC Certificate of Registration for "Chiyuto Creative Wealth Document Facilitation Services OPC" issued on Novamber 23, 2020 (Annex “B") “The requirements for a business permit are: (a) SEC certificate of registration, (b) EIT cenicate of registration; and (c) socondary license from the SEC allowing the company to engage in the solicitation and accepting of investmonts vember 23 and 24, 2020. And as the SEC disclosed. Chiyuto had none of these until No\ ation and acceptat it. was never issued a secondary license to engage in the s investments, Ina TV report, GMA One Western Visayas also stated that tho National Bureau of Investigation (NB) had obtained a cerificatlon from the Roxas City LGU that Chiyuto was operating WITHOUT a mayor's permit. ont of Roxas City to stop 1021, because of the failure of the local govern 9 the public from this On January 5, 2 ions of Mr, Chiyuto and with purpose of protectin, the illegal operati Aasnsnns==S==== T pdvizory, SEC website tps: actatlon services/ 2 gs warning published on BSP wobsite he fuwactongovph/edia_And_fesenrVMedlo0Relesee/2020-08/new 0611202001 9 aarerarage tps wma sacebok.com/PhililneSEC/rots/2679350175602324 1ecqgovph/advisorles-2020/chiyuto-creative-weath- document Scanned with CamScannerinvestment scam, | began a es m, | began a series of exposes through “vlogging" Facebook rogarding no ttue charactor of Chyute's seam, nO" YouTube and A S$ part of my commentaries, | called the attention of respondent City Mayor Dadivas. about the glarin ions Shout tho glaring veltons sorvmiies by Chiyulo, one of which was the lack ofa buinoes Sadly, these public statements fell 1 . those public statomonts fa on dont oars. Tho LGU dt nothing to stop the Chiyuto ope rations ‘8 aocound ote ‘of a businoss pormil, Mayor Dadivas ‘also nogloctod to a advisory of tho and Bangko Sontral ng Pil st investment operations of Mr, Chiyuto, : ———aE Thoso Facobook and YouTube videos wore widely disseminated in Roxas City and Capiz 8s could be gleaned {rom the number of views registered on these social media platforms. Local edi arganizatons tke Bombo Radyo Roxas likewise gave oxtensive coverage to ye Scan The controversy generated so much interest that even former DILG Secretary Mar Roxas issued a statement on Facebook! warning the public against putting their hard-earned ‘money into this double-your-money scheme. Consequently, on February 1, 2021, the SEC issued a cease-and-desist order® against Chiyuto and his company. On February 16, 2021, SEC revoked the Certification of Registration of the Chiyulo Creative Wealth Documentation Facilitation Service for operating a business resembling a Ponzi scheme*. THE CHARGE In the face of all these public discussions about the illegal operations of Chiyuto, respondent Dadivas committed GRAVE NEGLECT OF DUTY and GRAVE MISCONDUCT with his failure to perform his duties as the Local Chief Executive of Roxas City by allowing the open and public operations of an illegal investment scheme, which Siready caught the attention of the SEC and BSP. These government agencies warned the public against investing money to this illegal investment scheme, It ig incumbent on the City Mayor to protect his constituents from this criminal activity which allowed Mr. Chiyuto and his cohorts to run away with BILLIONS of people’s money vinen the SEC issued a Cease and Desist Order to finally stop the operations of Mir Chiyuto. As a lawyer by profession, Mayor Dadivas is expected to realize that the operations of an investment business without the necessary government permits is illegal TRavas within his powers and duties to stop this Ponzi scam at the earliest possible time to protect the general public from suffering the effects of this scam. ‘There were adequate warnings from SEC and BSP made publicly through their website and social media. nis, tens of thousands of people in the Roxas City and Capiz, a8 i i scheme. Billions of Ghose rom nearby provinces, fell victim to the Chiyute Ponz) SoNeme. f resosin ost teamed money ofthe viotims vanished into thin air. Such Fiery to "investors" Of this investment scam could have been ‘ninimized or mitigated had respondent Dadivas Based on media accou! TFocebook post of Mar Roxas, January & 2021 “Factor cone rots filoss0S8014132 7 tee ent oder, Securities and Exchange Commission NS avo sec.gov.ph/ WP ease one/2021702/2023C00 chit Creatve WEAN EE a corte ess, Secures and Exchange Commision (S57 webs tpsi//uww se chiyutos-ope-registration-over iilegalinvestment-scheme/ gov.ph/pr-202i/seccancels Scanned with CamScannerperformed his duties and responsibilities as LCE and stopped the "Double-Your-Mone aeee treat scheme at the time that it came to his knowlodge. After what had happened, with its davastaling consoquences jo We people and the aay omy respondent Dadivas has not ullorod a single wore ‘about the scam, No warning to the public whatsoever. In view of the forogoing, it Is:raspocttully roquastod that the Office of the Prosident, through its altorego, tho Socretary, Department of Tre Intorior and Local Government (‘DILG’), commence an ADMINISTRATIVE PROCEEDING against respondent RONNIE (ADIVAS. City Mayor, Roxas City, for GROSS NEGLECT OF DUTY or DERELICTION OF DUTY. Further, after due notice, it is prayed that respondent be placed under PREVENTIVE SUSPENSION during the conduct of the proceedings prevent him from unduly influencing its outcome and harass witnesses: Finally, after the conduct of administrative hearings, that respondent DADIVAS be meted with the appropriate penalty under applicable laws. Very @specttialy. MANUEL P. MEJORADA Scanned with CamScannerIBED AND SWORN to before me Stel exhibiting to me his known VERIFICATION and CERTIFICATION OF NON-FORUM SHOPPING |, MANUEL P, MEJORADA, of legal age, Filipino, with address at Mabini Street, Roxas Cily, Capiz, after having been duly sworn in accordance with law, do hereby depose and state that 1. Lani the complainant in the instant caso; 2. Inmy capacity, | have caused the preparation of the foregoing Complaint, contents of which are all true and correct of my personal knowledge and/or based on authentic public records; 3. tis further cerlified that | have not heretofore commenced any action involving the same issues before this Honorable Court, the Court of Appeals, or different divisions thereof, or any other tribunal or agency and to the best of my knowledge, no such other action or proceeding is pending in before this Honorable Court, the Court of Appeals, or the different. divisions thereof, or any other tribunal or agency. and if | should thereafter learn that a similar action or proceeding has been filed or is pending before this Honorable Court. the Court of Appeals, or different divisions thereof, or any other tribunal or agency; l undertake to promptly inform the aforesaid courts and other tribunal or agency thereof within five (5) days therefrom. AFFIANT FURTHER SAYETH NAUGHT. oe MANUEL P. Hay 1 JB; May 2021, personally such, —_affiant and to me as issued at _ __ 7 and certifying to me that the foregoing is his voluntary will expi act and deed. re on (SB ATTY. d mR Pee eres ‘Notary Public for: [Until Dec. 31, 2021 oe Ee No, BRS HiNetonesmarcin oc Series of 2021 IBPN * (01-04, 2021 ‘MCLE COMP. NO. V0 ‘ahd Van) 41492 Farmew QC. ISHED: COPY FURNISHED: | onTRERAS Gov. ES) Governor, Provin Office of sTEBAN ice of Capiz the Governor Capiz Provincial Capitol Roxas Cil ty, Capiz Scanned with CamScanner