G.R. No. 149335 - Montemayor vs. Bundalian

Edillo C. Montemayor, OIC-Regional Director of DPWH Region III, purchased on May 27, 1993 a house and lot in Burbank, California (Grant Deed) and executed a Special Power of Attorney authorizing his sister-in-law Estela Fajardo to complete the transaction.
On July 15, 1995, private respondent Luis Bundalian sent an unverified letter-complaint via the Philippine Consulate in San Francisco alleging that Montemayor acquired the property with ill-gotten lahar funds and that his in-laws lacked the means to finance the purchase.

From May 29, 1996 to March 13, 1997, the Philippine Commission Against Graft and Corruption (PCAGC) conducted hearings. Montemayor, through counsel, submitted his service record, checks issued by Fajardo, and various motions but refused to file his SALNs (1992–1994) and ITRs despite repeated directives.
The PCAGC found the USD 195,000 purchase price (approx. ₱3.9 M in 1993) “manifestly out of proportion” to Montemayor’s 1993 salary (₱168,648), deemed his explanation “unsubstantiated and self-serving,” and invoked the presumption of adverse inference for withheld documents.

On August 24, 1998, the Office of the President issued Administrative Order No. 12 dismissing Montemayor from service with forfeiture of benefits. His motion for reconsideration was denied.
Montemayor’s appeal to the Court of Appeals was dismissed in a decision dated April 18, 2001. He then filed this petition for review on certiorari before the Supreme Court.

Whether Montemayor was denied due process during the PCAGC investigation.
Whether the PCAGC’s findings against Montemayor were supported by substantial evidence.
Whether prior dismissals of similar charges by the Ombudsman operated as res judicata, rendering the PCAGC case moot.