G.R. No. 73642 - Gil vs. People

The case involves a set of consolidated criminal cases (Criminal Cases Nos. 9968, 9969, 9970, and 9971) filed against public officers of the Municipality of Caraga, Davao Oriental.
The accused include Mayor Restituto Palma Gil, Municipal Treasurer Eusebio G. Pantillo, and Municipal Secretary Nestor Pelayo.
The offenses charged are malversation of government property, technical malversation, falsification of public/official documents, and violation of Section 3(h) of Republic Act No. 3019 (Anti-Graft Practices Act).

Consolidated Plywood Industries, Inc. donated 80 cubic meters of yakal logs to the Municipality of Caraga, as evidenced by a deed of donation.
The donation was intended for the construction of infrastructure projects, specifically the Lugusan, Binogtuan, Nanaingan, and Cuta bridges.
The donation was officially accepted by the municipal government through a resolution (Resolution No. 122-80) passed by the Sangguniang Bayan.

It was alleged that Mayor Palma Gil, as a public officer and Municipal Mayor, misappropriated 9,000 board feet of yakal lumber from the donated materials.
The logs were purportedly diverted from their designated use for the Cuta bridge and other specified infrastructure, with evidence presented by prosecution witnesses such as Luis Madanlo and Juan Ferrando.
Testimonies indicated that while some logs were used for bridge repairs (e.g., Nanaingan Bridge), the excess was redirected to other municipal projects, including the municipal high school building, mini grandstand, shade house, and part of the public market.

Charges were brought against Mayor Palma Gil and Municipal Treasurer Pantillo for diverting and misapplying P78,000.00 from the Capital Improvement Program (CIP) funds.
The allegation centered on the use of the CIP funds for projects other than those originally appropriated by law, with the defense arguing that any reappropriation was made under an ordinance approved by the Sangguniang Bayan and subsequently endorsed by the Provincial Auditor.
The prosecution’s case relied on the notion that the diversion of funds, regardless of subsequent project accomplishments, amounted to technical malversation.

Allegations in Criminal Case No. 9970 (Falsification of Public/Official Document)

Charges were filed against Mayor Palma Gil and Municipal Secretary Pelayo for falsifying a Sangguniang Bayan resolution (Resolution No. 47-81).
The confusion arose from two resolutions allegedly bearing the same number – one reverting or reappropriating P78,000.00 of CIP funds for other municipal projects and another appropriating P1,000.00 for Boa Primary School.
Witnesses provided conflicting testimonies regarding the authenticity, passage, and contents of the disputed resolutions, leading to doubts about whether any fraudulent document was prepared.

Mayor Palma Gil was charged with violating Section 3(h) of RA 3019 by allegedly having a financial or pecuniary interest in a government contract.
The specific contract involved the hauling of cement and other materials, wherein municipal cargo trucks owned by the mayor were used.
Testimonies from Cayetano Iturralde and Rogelio Bacalla detailed transactions and arrangements concerning the use of the trucks but also raised questions about whether the mayor directly intervened or benefited from the hauling contracts.

The cases were heard jointly with separate hearings arranged such that witness testimonies could pertain to one or more of the cases.
The Sandiganbayan convicted the accused on all counts based on the combined evidence and arguments presented in the trial.
On appeal, the petitioners raised several errors, including reliance on weak circumstantial evidence and the failure of the prosecution to exclude alternate explanations for the diversion of funds and materials.
The petitioners also argued that the charges were influenced by political motivations and partisan interests, which allegedly tainted witness testimonies and affected the evaluation of evidence.

Whether the evidence presented was sufficient to prove beyond reasonable doubt that Mayor Palma Gil misappropriated 9,000 board feet of yakal lumber intended for public infrastructure projects (malversation).
Whether the diversion and application of P78,000.00 from the Capital Improvement Program funds to other municipal projects, without explicit legal authority, constitutes technical malversation.
Whether the alleged falsification of the Sangguniang Bayan Resolution No. 47-81, with conflicting documentary evidence and ambiguous witness testimony, is sufficient to sustain a conviction for falsification of public/official documents.
Whether the use of municipal cargo trucks in hauling government materials, and the associated financial arrangements, establish that the mayor improperly held a financial or pecuniary interest in a government contract, thereby violating Section 3(h) of RA 3019.
Whether the Sandiganbayan committed reversible errors in its assessment of the evidence, particularly in light of the possibility of politically motivated charges and testimony, thereby undermining the integrity of its findings.