G.R. No. 248699 - People vs. Jeorge Ejercito Estregan, et al.

In 2009, the United Boatmen Association of Pagsanjan (UBAP) filed a complaint against Jeorge Ejercito Estregan (Mayor of Pagsanjan), Vice-Mayor Crisostomo B. Vilar, Municipal Councilors including Arlyn Lazaro-Torres, Terryl Gamit-Talabong, Kalahi U. Rabago, Erwin P. Sacluti, Gener C. Dimaranan, and private individual Marilyn M. Bruel (proprietor of First Rapids Care Ventures – FRCV).
The complaint alleged unlawful entry into a Memorandum of Agreement (MOA) for Accident Protection and Assistance (APA) services without public bidding and despite FRCV lacking a Certificate of Authority from the Insurance Commission.
After investigation, the Office of the Ombudsman found probable cause to indict all accused for violation of Section 3(e) of RA 3019 (Anti-Graft and Corrupt Practices Act).

Filed on March 16, 2016, accused were charged for conspiring to unlawfully give unwarranted benefit to Bruel/FRCV by entering into the MOA without the requisite public bidding and despite FRCV’s lack of insurance license.
Accused-appellants pleaded not guilty.

Parties stipulated that accused public officials held their positions, Bruel was proprietor of FRCV, the Sangguniang Bayan passed ordinances authorizing Estregan to contract with a qualified entity for APA services.
FRCV submitted a proposal and MOA was entered on October 23, 2008, then ratified by the Sangguniang Bayan via resolution.
Prosecution presented a witness from the Insurance Commission who opined the MOA was an insurance contract.
Defense testimonies:

Councilors Torres and Talabong stated their votes were made in good faith, after deliberation, believing the ordinances were for the public benefit.
Estregan and other accused stated the need for an APA program, holding public consultations and presentations to justify FRCV’s capability.
The APA fees were sourced from boat ride service fees categorized as a special fund, collected and held in trust by the Municipal Treasurer.
UBAP’s new Board desisted from complaint, recognizing the APA services’ necessity.

Found Estregan, Torres, Talabong, Rabago, Sacluti, Dimaranan, and Bruel guilty beyond reasonable doubt of violating Section 3(e) of RA 3019.
Acquitted Vilar for lack of evidence.
Held Estregan acted with bad faith, manifest partiality, and negligence, awarding FRCV unwarranted benefits.
Sentenced guilty parties to imprisonment of six years and one month to eight years, with perpetual disqualification from public office.

Accused-appellants appealed, raising arguments of good faith, lack of conspiracy, the nature of MOA as special services and not insurance contract, and absence of procurement irregularities.
OSP argued procedural defects and affirmed liability.
Estregan’s counsel filed appeals late; justification denied by the Supreme Court.

Whether the MOA between the Municipality of Pagsanjan and FRCV constitutes a contract of insurance.
Whether public bidding was required for the procurement of APA services under the MOA.
Whether accused public officials and Bruel acted with manifest partiality, evident bad faith, or gross inexcusable negligence under Section 3(e) of RA 3019.
Whether the accused caused undue injury to the Municipality or gave unwarranted benefits to FRCV.
Whether the members of the Sangguniang Bayan, aside from Estregan, were liable under Section 3(e).
The validity of procedural questions regarding the filing and admission of appeal briefs.