Former Laguna Governor Emilio Ramon "ER" Ejercito on Tuesday pleaded not guilty to his graft case over an allegedly anomalous tourism insurance package.

Ejercito is accused of conspiring with the municipal vice mayor and councilors of Pagsanjan, Laguna in forging a memorandum of agreement with First Rapids Care Ventures (FRCV) for the accidental protection and financial assistance of tourists and boatmen in Pagsanjan tourism zones without prior bidding.

Under the insurance plan, tourists and qualified boatmen at the Pagsanjan Gorge Tourist Zone will receive financial assistance for loss of life or disablement, medical reimbursement, and ambulance and hospital transfer reimbursement.

The Ombudsman said Pagsanjan officials signed a contract with FRCV without prior bidding, although the company was not licensed and lacked certificate of authority from the Insurance Commission.

The agreement was signed when Ejercito was still Pagsanjan mayor in 2008.

Ejercito is currently out on P30,000 bail posted before the Sandiganbayan last April.