G.R. No. 134298 - Tan vs. People

Petitioners Jose T. Villarosa (Municipal Mayor), Pablo I. Alvaro (Municipal Accountant), and Carlito T. Cajayon (Municipal Treasurer) of San Jose, Occidental Mindoro faced criminal and administrative complaints filed by private respondent Rolando C. Basilio.
The complaints accused the petitioners of Technical Malversation under Article 220 of the Revised Penal Code (RPC), violations of various provisions of Republic Act (R.A.) No. 3019 (Anti-Graft and Corrupt Practices Act), violation of R.A. No. 8240, grave abuse of authority, grave misconduct, dishonesty, and conduct prejudicial to the best interest of the service.

The petitioners were alleged to have misused the municipality’s "Trust Fund" derived from tobacco excise taxes ("Tobacco Fund") under R.A. No. 8240, using it to finance regular municipal operations, which was outside the lawful purpose for the fund.
Petitioner Villarosa allegedly procured ten (10) reconditioned multi-cab vehicles for P2,115,000.00 without indicating "reconditioned" in the contracts or bids.
Private respondent theorized a conspiracy due to lack of prior budgetary authorization and misappropriation that prejudiced intended beneficiaries (farmers).

The Ombudsman directed petitioners to file counter-affidavits and controverting evidence; petitioners denied the charges, asserting ministerial roles and delegated authority from Representative Amelita Villarosa, who purportedly authorized the use of funds.
Petitioners Alvaro and Cajayon contended their actions were ministerial; that the Tobacco Fund was treated as part of the general fund given appropriate allotments and Sangguniang Bayan appropriations.
Petitioner Villarosa justified the purchase of vehicles for farmers’ use and claimed no prohibition existed against treating Tobacco Funds as general funds.
The Ombudsman also received position papers; private respondent Basilio reiterated the charges, while the petitioners delayed filing.
The Ombudsman requested submission of an Escrow Agreement and relevant documents confirming fund release and authority. Petitioners partially complied.
Petitioners failed to file timely position papers, leading the Ombudsman to consider the case submitted for decision.

The Ombudsman’s Joint Resolution of March 23, 2015 found probable cause against petitioners for Technical Malversation and violation of Section 3(e) of R.A. No. 3019.
Petitioners were found guilty of grave misconduct, dishonesty, and conduct prejudicial to the best interest of the service, recommending dismissal from service with ancillary penalties.
Petitioners’ motion for reconsideration was denied by the Ombudsman on July 29, 2015.

Petitioners sought review before the Supreme Court through a Rule 65 Petition for Certiorari, arguing grave abuse of discretion by the Ombudsman for finding probable cause and denying reconsideration.
Petitioners maintained their innocence, asserting lawful use of funds, ministerial roles, absence of undue injury or unwarranted benefits, and lack of specific earmarking of funds.

The Office of the Solicitor General supported the Ombudsman’s finding of probable cause for Technical Malversation and violation of R.A. No. 3019, emphasizing the Ombudsman’s broad powers and the Court’s policy of non-interference barring grave abuse of discretion.

Whether or not the Ombudsman committed grave abuse of discretion amounting to lack or excess of jurisdiction in finding probable cause against petitioners for Technical Malversation and violation of Section 3(e) of R.A. No. 3019.
Whether or not there is probable cause to indict petitioners for Technical Malversation.
Whether or not there is probable cause to indict petitioners for violation of Section 3(e) of R.A. No. 3019.
Whether or not the petition for certiorari is the proper remedy in the absence of other plain, speedy, and adequate remedies.