Facts:

The case involves Efren L. Alvarez, the petitioner, who served as the Mayor of the Municipality of MuAoz, Nueva Ecija. The events leading to the case began in July 1995 when the Sangguniang Bayan (SB) of MuAoz passed Resolution No. 136, S-95, inviting Mr. Jess Garcia, President of Australian-Professional, Inc. (API), to discuss a proposed four-storey shopping mall project known as the "Wag-wag Shopping Mall." This project was included in the municipality's Multi-Development Plan and was to be executed under a Build-Operate-Transfer (BOT) arrangement, with an estimated cost of P240 million. API submitted its proposal on November 7, 1995, and an invitation for proposals was published on February 9, 1996. The Pre-qualification, Bids and Awards Committee (PBAC) recommended API's proposal, and on April 15, 1996, the SB authorized Alvarez to enter into a Memorandum of Agreement (MOA) with API.

The groundbreaking ceremony took place on February 14, 1997, after th...

Facts:

Background and Project Initiation

• Efren L. Alvarez, then Mayor of the Municipality of MuAoz (now Science City) in Nueva Ecija, oversaw the initiation of a project for constructing a four-storey shopping mall under a Build-Operate-Transfer (BOT) arrangement.
• In July 1995, the Sangguniang Bayan (SB) of MuAoz, via Resolution No. 136, S-95, invited Mr. Jess Garcia, President of the Australian-Professional, Inc. (API), to participate in the project as part of the municipality’s Multi-Development Plan.

Bidding and Contract Award Process

• API submitted its proposal on November 7, 1995, following publication of an Invitation for Proposals in the Pinoy Tabloid on February 9, 1996.
• On April 12, 1996, the Pre-qualification, Bids and Awards Committee (PBAC) recommended the approval of API’s sole submission.
• On April 15, 1996, the SB passed a resolution authorizing Mayor Alvarez to negotiate and execute a Memorandum of Agreement (MOA) with API.
• The MOA, signed on September 12, 1996 by petitioner and API’s representative, clarified that API would construct the Wag-Wag Shopping Mall under the BOT scheme and complete the work within 730 calendar days.

Project Implementation and Subsequent Developments

• The project involved the transformation of a 4,000-square-meter property; existing government structures (including the old Motor Pool, Health Center, and several offices) were demolished to clear the site.
• A groundbreaking ceremony was held on February 14, 1997, and work began with excavation (approximately 3 meters deep) and installation of a public billboard signaling project commencement.
• Despite initial activities, API ceased work within a few months, leaving only preliminary construction (such as the sales office) completed and abandoning the mall project.

Allegations and Criminal Charges

• On August 10, 2006, petitioner was charged before the Sandiganbayan for violation of Section 3(e) of Republic Act (R.A.) No. 3019 (the Anti-Graft and Corrupt Practices Act), on the ground that he, in his official capacity, awarded the BOT contract to API.
• The charge alleged that Alvarez, while acting with evident bad faith, gross inexcusable negligence, or manifest partiality, gave API unwarranted benefits by awarding a P240-million contract despite API lacking a valid contractor’s license and sufficient experience or financial capability.
• Testimonies revealed that although no municipal funds were directly disbursed for the project and API even paid a P500,000 demolition/relocation fee in connection with the demolition of unsafe old structures, the award process was fraught with irregularities—such as the lack of competitive bidding and adherence to bidding requirements.

Judicial Proceedings and Municipal Impact

• The Sandiganbayan’s decision dated November 16, 2009, found Alvarez guilty beyond reasonable doubt, highlighting that he “railroaded” the project and provided unwarranted preference to API.
• The municipality sustained damage amounting to approximately P4.8 million, representing a loss incurred from the absence of required performance security and deviation from standard public bidding procedures.
• Subsequent motions for reconsideration were denied, and evidentiary findings underscored API’s non-compliance with the legal and procedural requirements under R.A. No. 6957 (as amended by R.A. No. 7718) and other related regulations.

Issue:

Sufficiency of Proof

• Whether the Sandiganbayan failed to observe the requirement of proof beyond reasonable doubt in convicting petitioner Alvarez.

Interpretation and Application of the BOT Law

• Whether the court failed to appreciate the legal intent of the BOT project and mistakenly allowed the project to be characterized as an unsolicited proposal exempt from critical bidding requirements.

Accountability in the Award Process

• Whether the petitioner’s role as head of the PBAC and his conduct in authorizing a non-competitive award to an unqualified contractor (API) constitutes manifest partiality, evident bad faith, or gross inexcusable negligence.

Assessment of Damage and Prejudice

• Whether the alleged absence of direct municipal disbursement or the demolition of unsafe buildings negates the finding of damage or injury to the public interest, as mandated under Section 3(e) of R.A. No. 3019.

Procedural and Technical Objections

• Whether deviations from publication and bidding procedures (including the shortened proposal submission period and lack of complete proposal requirements by API) should have precluded the awarding of the contract.

Ruling:

• (Subscriber-Only)

Ratio:

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Doctrine:

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