G.R. No. 147036-37 - Petitioner-Organizations vs. Executive Secretary

The Mactan Cebu International Airport Authority (MCIAA) is a government-owned and controlled corporation tasked with managing the Mactan Cebu International Airport.
For the 12th ASEAN Summit in Cebu (December 2006), MCIAA aimed to upgrade firefighting capabilities, deciding to purchase one aircraft rescue firefighting vehicle (ARFFV).
The procurement was done via limited source bidding with detailed Terms of Reference specifying eligibility and qualifications for bidders.
The bidding documents required the manufacturers' representatives to have relevant experience; initially five years, later reduced to one year.

The BAC conducted pre-bidding conferences and issued bid bulletins.
Three bidders participated: AsiaBorders, Pelican Bay Group Inc., and Audiophile Components.
AsiaBorders, represented by Marlon E. Barillo, was declared the bidder with the lowest calculated responsive bid of USD 732,000.00.
Contract was signed between MCIAA, represented by General Manager Adelberto Federico Yap, and AsiaBorders, represented by Barillo, for the supply and delivery of the ARFFV.

AsiaBorders was obligated to open an irrevocable letter of credit within 10 days from the contract signing.
The costs, fees, and charges for opening this letter of credit were to be shared: 80% by AsiaBorders and 20% by MCIAA, not exceeding PHP 6 million.
The PHP 6 million payment by MCIAA was to be deducted from the total contract price after delivery and acceptance.

Barillo requested the release of the PHP 6 million for the letter of credit opening.
Yap approved, and a disbursement voucher and check were issued for this amount to AsiaBorders prior to delivery.
The vehicle was delivered months later, and COA inspectors found it in good operational condition.

Accused included Yap, OrdoAez (BAC Chairperson), Dublin (Legal Officer), Casas (Accounting Division Manager), and Barillo (AsiaBorders President).
Charged with violations of Section 3(e) and 3(g) of RA 3019 for causing undue injury and entering into a manifestly disadvantageous contract involving advance payment to AsiaBorders despite it allegedly being unqualified.
Additional allegations involved conspiracy among accused-appellants in modifying bidding conditions and facilitating undue payments.

Prosecution highlighted irregularities such as reduction in bidding qualification years, improper advance payment, and under-declaration of import value to customs.
Testimonies revealed documents lost or unavailable and detailed steps in bidding and payment processing.
Defense argued the contract was valid, the payment was part of contract terms, and no bad faith or partiality existed; the reduction in experience years was a BAC discretion.
Accused-appellants maintained adherence to legal and procedural requirements in their acts.

Whether the Information included allegations based on defective terms of the Contract.
Whether AsiaBorders was a qualified bidder.
Whether accused-appellants could be held liable for acts not specifically alleged in the Information.
Whether the payment of PHP 6 million for the letter of credit costs was premature and unlawful.

Who fixed the purchase price for ARFFV.
Whether Yap was responsible for executing customs documents with undervalued declaration.