Case Digest (G.R. No. 142738)
Facts:
The case involves Dr. Honorata G. Baylon (petitioner) against the Office of the Ombudsman and the Sandiganbayan (respondents). In 1993, Dr. Baylon was appointed as the Program Manager of the National Voluntary Blood Donation Program under the Department of Health (DOH), with the National Kidney and Transplant Institute (NKTI) as the lead agency. Following a study by the USAID on the Philippine blood banking system, Secretary of Health Juan M. Flavier announced a closure order on commercial blood banks due to safety concerns, leading to a critical shortage of blood. Consequently, the NKTI expedited the implementation of the voluntary blood donation system.
In March 1994, requisition vouchers were issued for the purchase of Terumo blood bags from FVA-Exim Trading, the exclusive distributor of these bags. The prices quoted by FVA were later found to be higher than those offered to other medical institutions, leading the Commission on Audit (COA) to disallow the purchase in 19...
Case Digest (G.R. No. 142738)
Facts:
Appointment and Role of Dr. Baylon
In 1993, Dr. Honorata Baylon was appointed as the Program Manager of the National Voluntary Blood Donation Program (NVBD Program) under the Department of Health (DOH). The National Kidney and Transplant Institute (NKTI) was the lead agency for this program.
Initiation of the "STOP D.E.A.T.H." Project
On February 3, 1994, the DOH initiated a project called "STOP D.E.A.T.H.: Hospitals for Philippines 2000." The NVBD Program was included in this project, and P51 million was allocated for it.
Blood Shortage Crisis
In February 1994, a USAID study revealed that the Philippine blood transfusion system was unsafe, with a contamination rate of 4%. In response, Health Secretary Juan Flavier ordered the closure of commercial blood bank outlets, leading to a blood shortage. To address this, the DOH expedited the implementation of the voluntary blood donation system.
Purchase of Blood Bags
In March 1994, NKTI decided to purchase Terumo blood bags from FVA-Exim Trading, the exclusive distributor of Terumo products. FVA provided a reduced quotation for the bags, which NKTI accepted.
Audit Disallowance
In March 1995, the Commission on Audit (COA) disallowed the purchase, claiming it was overpriced and did not follow public bidding procedures. COA compared the prices with those offered to other institutions, concluding the government lost P1,964,304.70.
Ombudsman Proceedings
A complaint was filed against Dr. Baylon and other DOH officials for violating the Anti-Graft and Corrupt Practices Act (R.A. 3019). Initially, the Ombudsman’s Evaluation and Preliminary Investigation Bureau (EPIB) recommended dismissal due to insufficient evidence. However, the Ombudsman later approved a memorandum recommending prosecution.
Sandiganbayan Proceedings
Dr. Baylon and her co-accused were charged before the Sandiganbayan. A reinvestigation was conducted, and the COA eventually lifted its disallowance in 2001, acknowledging that the purchase was justified.
Issue:
- (Unlock)
Ruling:
- (Unlock)
Ratio:
Absence of Undue Injury
The Court found no evidence of overpricing or undue injury to the government. NKTI secured the blood bags at prices lower than those offered to other government hospitals in 1994. The COA’s initial comparison was flawed as it used prices from 1995, not 1994.
Lack of Bad Faith or Gross Negligence
No evident bad faith or gross inexcusable negligence was proven on the part of Dr. Baylon. The purchase was made in response to an urgent public health crisis, and the choice of supplier was justified as FVA was the exclusive distributor of Terumo products.
Exemption from Public Bidding
The purchase was exempt from public bidding under Executive Order No. 301 due to the urgency of the situation and the exclusive nature of the supplier.
Grave Abuse of Discretion by the Ombudsman
The Ombudsman ignored critical facts, such as the urgency of the purchase and the justified decision to procure from FVA. This arbitrary decision constituted grave abuse of discretion.
The Court emphasized that agencies must ensure investigations are free from political harassment and that prosecutions are based on sufficient evidence to protect the innocent from unnecessary trials.