G.R. No. 195615 - Bank of Commerce vs. Radio Philippines Network, Inc.

In 1992, Maglei Enterprises Co. (owned by Rose Cuyos and John Elvin C. Medina) applied to the Bureau of Customs (BOC) for authority to operate a Customs Bonded Warehouse (CBW)-Manufacturing Warehouse.
CBW Supervisor Juanito A. Baliwag conducted an ocular inspection of the proposed warehouse site to verify structural compliance and recommended approval subject to re-inspection before transfer of imported goods.
On March 16, 1992, Ben C. Jurado, then Chief of the Warehouse Inspection Division (WID), concurred with Baliwag’s recommendation and indorsed the application papers to the Chief of the Miscellaneous Manufacturing Bonded Warehouse Division (MMBWD), Rolando A. Mendoza.
Mendoza, in a memorandum dated March 20, 1992, reported substantial compliance with physical and documentary requirements and recommended approval. The application passed through other endorsements including those of Chief District Collector Emma M. Rosqueta, Deputy Commissioner Titus B. Villanueva, and Executive Director Atty. Alex Gaticales.
On June 25, 1992, Maglei was granted authority to establish and operate CBW No. M-1467 at 129 Jose Bautista St., Caloocan City. Maglei imported textiles intended for manufacturing exportable car covers.

On July 8 and 22, 1992, MMBWD Senior Storekeeper George O. Dizon was assigned to verify Maglei’s CBW. He reported that the warehouse existed and was operating.
Further verification by BOC revealed no actual warehouse at 129 Jose Bautista St.; the site was actually the School of the Divine Mercy. Only a small, inconspicuous signboard bore Maglei’s name.
Textile materials imported by Maglei disappeared without proof of export or payment of taxes.

On August 11, 1992, the BOC filed complaints against George P. Dizon, Rose Cuyos, and John Elvin C. Medina for violation of customs laws.
The Ombudsman’s Evaluation and Preliminary Investigation Bureau (EPIB), on February 13, 1996, recommended reversing BOC’s resolution and dismissing the complaint against Dizon; suggested further investigations against Rosqueta, Mendoza, and others including Jurado.
The Fact-Finding Bureau (FFB) of the Ombudsman, on September 29, 1997, recommended filing criminal charges under RA 3019 and the Tariff and Customs Code against several BOC officials including respondent Jurado, and administrative charges for dishonesty and gross misconduct.
The Ombudsman approved these recommendations on October 17, 1997.

On August 2, 1999, the Ombudsman dismissed the criminal complaint against Jurado for lack of prima facie evidence.
However, on August 16, 1999, the Administrative Adjudication Bureau (AAB) found Jurado administratively liable for neglect of duty and suspended him without pay for six months.
His motion for reconsideration was denied. Jurado appealed to the Court of Appeals (CA).

On July 3, 2002, the CA reversed and set aside the Ombudsman’s decision and resolution, effectively acquitting Jurado administratively.
The CA held that Jurado’s right to speedy disposition was violated due to the protracted pre-charge delay and that he was not negligent as he was not duty-bound to conduct inspections or re-inspections; his indorsement merely concurred with Baliwag’s recommendation, which was qualified and required re-inspection.

Whether respondent Ben C. Jurado’s constitutional right to speedy disposition of cases was violated.

Whether respondent was negligent in the performance of his duty as Chief of the Warehouse Inspection Division despite failure to ensure the existence of the warehouse.