G.R. No. 168951 - Posadas vs. Sandiganbayan

Background and Positions of Petitioners
Dr. Roger R. Posadas held a Ph.D. in Relativity Physics and was a professor and former Dean at the University of the Philippines (UP) Diliman.
He was appointed UP Diliman Chancellor for a three-year term from November 1, 1993 to October 31, 1996.
Dr. Rolando P. Dayco was the Vice-Chancellor for Administrative Affairs at UP Diliman.

Establishment of the Technology Management Center (TMC) and Project
On February 23, 1995, the UP Board of Regents approved the establishment of the Technology Management Center (TMC) under the Office of the Chancellor based on the recommendation of a UP Diliman Task Force.
Dr. Posadas declined the nomination as TMC Director, appointing Prof. Jose Tabbada as Acting Director.
On July 26, 1995, Dr. Posadas submitted a funding application for the TMC Project seeking funding from the Canadian International Development Agency (CIDA).
A Memorandum of Agreement (MOA) was executed on September 18, 1995 between UP Diliman (through Dr. Posadas) and the Philippine Institute for Development Studies (PIDS), the local executing agency for CIDA. The project’s total cost was P5,442,400.00, with UP Diliman providing a P4,228,524.00 counterpart.

Key Events Leading to the Appointment of Petitioners to TMC Project Positions
Dr. Posadas and a UP delegation were authorized to travel to China from October 30 to November 6, 1995.
Administrative Orders designated Dr. Dayco as Officer-In-Charge (OIC) of UP Diliman from October 30 to November 7, 1995.
On November 7, 1995, Dr. Dayco appointed Dr. Posadas as Project Director of the TMC retroactive to September 18, 1995, and also as Consultant for the project (contract undated).
Dr. Posadas received honoraria of P30,000 monthly and consultancy fees totaling P100,000 until payments were suspended in August 1996 by the Commission on Audit (COA) due to irregularities in the appointments and payments.

Administrative and Legal Proceedings
COA raised issues: honoraria exceeded rates under the National Compensation Circular; appointment of Chancellor as Project Director by OIC was unauthorized; appointment retroactivity violated rules; and double compensation was illegal.
UP legal office opined that payments were legal consultancy fees exempt from compensation circular and procurement guidelines, and that the appointment of Dr. Posadas was for managerial expertise. COA lifted suspension notices in September 1997.
UP President ordered an administrative investigation following a complaint by a UP staffer linked to internal university conflicts.
An Administrative Disciplinary Tribunal (ADT) found petitioners guilty of grave misconduct and recommended dismissal.
The UP Board of Regents later modified penalties to forced resignation, cancellation of eligibility, disqualification from government service for one year, and permanent disqualification from administrative posts.
Despite initial recommendation to dismiss charges, Ombudsman ordered petitioners indicted for violation of R.A. No. 3019 and R.A. No. 6713.
Criminal case filed before the Sandiganbayan, charging violation of Section 3(e) of R.A. No. 3019 for giving unwarranted benefit and causing undue injury to the government, and violation of Section 7(b), R.A. No. 6713 for unauthorized private practice.
Petitioners pleaded not guilty; trial ensued.

Sandiganbayan Decision of June 28, 2005
Petitioners found guilty beyond reasonable doubt for both violations.
Sentenced to indeterminate imprisonment of 9 years and 1 day to 12 years for graft with perpetual disqualification, and 5 years imprisonment and disqualification for violation of ethical standards.
Ordered to indemnify government P336,000 representing unlawful compensation.
Held that appointment by OIC Dayco was ultra vires since OIC power to appoint is limited.
Ruled payments involved public funds despite foreign funding source as funds were impressed with public character, subject to audit.
Petitioners’ defenses including “university politics” and lack of actual loss rejected.

Procedural Issue
Whether the Sandiganbayan gravely abused its discretion in denying petitioners’ motion for reconsideration on the ground that it was not set for hearing.

Substantive Issues
Whether petitioners acted with evident bad faith or manifest partiality and caused undue injury to the government by the appointment of Dr. Posadas as TMC Project Director and Consultant in violation of Section 3(e) of R.A. No. 3019.
Whether petitioners violated Section 7(b) of R.A. No. 6713 by unauthorized private practice of profession through consultancy appointment.
Whether there was conspiracy between petitioners in committing said violations.