Title
Arias vs. Sandiganbayan
Case
G.R. No. 81563
Decision Date
Dec 19, 1989
Public officials acquitted of overpricing charges for land purchase; insufficient evidence of conspiracy or bad faith, fair market value deemed reasonable.

Case Digest (G.R. No. 81563)
Expanded Legal Reasoning Model

Facts:

  • Background and Project
    • In 1975 the Bureau of Public Works launched the Mangahan Floodway Project to alleviate flooding in Marikina and Pasig.
    • The Pasig Engineering District, led by District Engineer Cresencio D. Data, formed a committee to negotiate and acquire right-of-way lands through direct purchase.
  • The Agleham Property Acquisition
    • Attorney-in-fact Natividad C. Gutierrez submitted falsified documents—tax declarations, certificates, technical descriptions—misclassifying a 19,004 m² riceland in Pasig as residential and valuing it at ₱80/m².
    • District Engineer Data signed the deed of sale (April 20, 1978) transferring title to the Government; Auditor Amado C. Arias pre-audited and approved a voucher for ₱1,520,320 on October 23, 1978.
    • A later investigation uncovered multiple forgeries: tampered tax declarations (Exhs. B, K), false certifications (Exhs. J, D, E), and a forged sworn statement on market value (Exh. Z).
  • Procedural History
    • The Sandiganbayan convicted Arias, Data, Gutierrez, and others under RA 3019, sec. 3(e), sentencing each to 3–6 years, perpetual disqualification, and joint indemnification.
    • Arias and Data appealed to the Supreme Court; the Solicitor General filed a consolidated manifestation recommending acquittal for lack of proof and absence of undue injury.

Issues:

  • Conspiracy and Participation
    • Was there sufficient proof that Arias and Data knowingly conspired with co-accused to defraud the Government?
    • Did the petitioners have personal, deliberate involvement in planning or executing the fraudulent scheme?
  • Undue Injury and Overpricing
    • Did the negotiated purchase price of ₱80/m² cause “undue injury” to the Government?
    • Is the municipal assessor’s tax declaration value (₱5/m²) the correct benchmark for criminal liability on overpricing?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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