Title
Rogelim A. Cabrales and Noe Cabrido Gozalo vs. The Ombudsman, Nahum E. Dosdos, Pascual R. Pongase II, and Raul P. Llagas
Case
G.R. No. 254125
Decision Date
Oct 12, 2022
Municipality of Tukuran's motor grader procurement involved rigged bidding, overpricing, and irregularities. Petitioners found guilty of simple misconduct, suspended for 3 months or fined.
grave misconduct
procurement law
administrative law

Case Summary (G.R. No. 254125)

Factual Background of the Grader Procurement

The Municipality conducted a procurement process for a motor grader. The purchase request was signed by then Mayor Francisvic S. Villamero (Villamero) and specified one unit of Chenggong MG1320C Motor Grader. During bidding, two entities participated: Eagle Equipment Company, Inc. (Eagle) and Ivan Carr Industrial Supply and Construction Inc. (Ivan Carr). The Municipal Bids and Awards Committee (BAC) calculated Ivan Carr’s bid as the Lowest Calculated and Responsive Bid, and it cleared post-qualification. The Municipality then proceeded to purchase the motor grader from Ivan Carr for P9,450,000.00.

Private respondents Nahum E. Dosdos, Pascual R. Pongase II, and Raul P. Llagas filed a complaint with the NBI, alleging irregularities and rigging in the procurement. The NBI investigation concluded that the motor grader was overpriced and that the officials rigged the bidding. The NBI attributed alleged earnings of P1,500,000.00 to Villamero from the rigged bidding and noted that he allegedly intended to share the amount with Sangguniang Bayan members.

The NBI also identified multiple irregularities, including the specification of a Chenggong brand in the purchase request; failure to establish that the Invitation to Bid (ITB) and other bidding documents were posted on PhilGEPS because the Municipality was not registered therewith; lack of SEC registration of Eagle; the use of a residential house as Ivan Carr’s business address; and the alleged connection between the president/CEO of Ivan Carr and Eagle.

Administrative Case Before the Office of the Ombudsman

On June 22, 2016, the NBI referred its findings to the Office of the Ombudsman. The administrative aspect was docketed as OMB-M-A-16-0262, and the implicated municipal officials were directed to submit counter-affidavits.

The Ombudsman found Rogelim A. Cabrales and Noe Cabrido Gozalo, among others, guilty of grave misconduct. They were ordered dismissed from government service, with accessory penalties including cancellation of civil service eligibility, forfeiture of retirement benefits, and perpetual disqualification from government service.

The Ombudsman also found probable cause to charge Cabrales, Gozalo, and their correspondents for violation of Section 3(e) of Republic Act No. 3019.

Findings of Irregularity and Grounds for Administrative Liability

The Ombudsman sustained that the ITB for the grader procurement was not published in a newspaper of general nationwide circulation, as required by Section 21.2.1(a) of the 2009 GPRA IRR. It found that publication was made in Mindanao Gold Star Daily, which was deemed a newspaper of regional circulation only. It likewise found that the ITB could not have been posted on PhilGEPS because the Municipality was not registered therewith.

The Ombudsman also held that the Post-Qualification Evaluation Report wrongly declared Ivan Carr a responsive bidder despite failure to submit several required documents, including (among others) a production/delivery schedule; documents on after sales service/parts; commitment to extend a credit line or cash equivalent to ten percent of the approved budget; documents on recurring and maintenance costs; and additional requirements under the 2009 GPRA IRR relating to eligibility and bidder qualifications. It further found failure by Ivan Carr to submit PhilGEPS registration certificate and tax clearance, and it ruled that brand specification in the purchase request violated Section 18 of the GPRA.

The Ombudsman reasoned that the totality of these irregularities demonstrated lack of transparency and competitiveness, ensuring award to Ivan Carr. It also found improper allowance of a bidding outcome despite noncompliance, which it considered contrary to the policy of equal opportunity bidding. The Ombudsman rejected the claim of overpricing due to lack of evidence.

Appeal and Limitation of Review in the Court of Appeals

On appeal, the Court of Appeals affirmed the Ombudsman’s ruling as to the administrative aspect and dismissed the appeal of Cabrales and Gozalo. The appellate court limited its review to the administrative aspect and stated that it lacked jurisdiction to review the Ombudsman’s rulings concerning the criminal aspect.

The CA rejected Gozalo’s attempt to invoke the condonation doctrine, explaining that the doctrine applies to administrative offenses committed by elective officials who are later re-elected during the pendency of administrative proceedings. Because Gozalo was not serving as an elective official when he committed the offense, the CA concluded that his later election could not operate as condonation.

On the merits, the CA sustained the administrative finding of grave misconduct. It treated the alleged procurement irregularities as attributable to both petitioners, including: specification of brand name in the purchase request; favoring Ivan Carr despite deficient eligibility and bid documents; non-publication of the ITB in a newspaper of nationwide general circulation; and conduct of procurement despite non-registration with PhilGEPS.

The CA also rejected the defense that petitioners were mere alternate members who did not actively participate. It noted that they attended meetings and participated in proceedings. In particular, Gozalo, described as alternate chairperson, attended a meeting even when the principal chairperson was present, which it considered contrary to the 2009 GPRA IRR. The CA concluded that their participation helped ensure approval of the procurement despite irregularities.

Issues Raised in the Present Petition

In their Rule 45 petition, Cabrales and Gozalo argued that they could not be held liable for grave misconduct. Their principal submissions were that: first, the ITB was actually published in a newspaper of general circulation; second, the requirement of PhilGEPS registration was effectively mooted by lack of stable internet connection; third, other BAC members in a related case were found liable only for simple misconduct; fourth, Gozalo never became the regular chairperson of the BAC; fifth, Cabrales allegedly voted to award the contract to Eagle and therefore should not be liable for the award to Ivan Carr; and sixth, Gozalo should benefit from the condonation doctrine due to his later election as municipal councilor.

The Ombudsman countered that the petition raised factual issues beyond the scope of Rule 45 review. It also argued that the BAC members’ involvement was not merely ceremonial, citing jurisprudence that BAC participation in bidding irregularities could support administrative liability. It reiterated that the Mindanao Gold Star Daily did not qualify as a newspaper of nationwide general circulation based on its website information, and that petitioners’ claims on their participation were contradicted by the records. Finally, it maintained that mitigating circumstances could not be applied to grave misconduct.

The Supreme Court’s Evaluation of the Procurement Irregularities

The Supreme Court held that the grader procurement violated procurement regulations. It emphasized that both the Ombudsman and the CA found the procurement to be highly irregular, and it gave weight and respect to the Ombudsman’s findings, especially because they were affirmed on appeal.

The Court further noted that petitioners did not meaningfully dispute the Ombudsman’s factual findings on the irregularities. It treated the defective purchase request—specifically the brand specification—as inherently problematic under the GPRA framework. It likewise regarded the winning bidder’s failure to comply with documents required by the 2009 GPRA IRR as a fundamental procedural breach that the BAC should not have allowed.

The Court rejected petitioners’ justifications in two major respects. First, it ruled that the argument of non-registration or lack of PhilGEPS access due to internet instability did not absolve them. It cited Section 8.3.1, Rule II of the 2009 GPRA IRR, which mandates all procuring entities to register with PhilGEPS and to ensure access to an online network to enable online transmission and use of electronic data messages or electronic documents. The Court reasoned that the regulation anticipated and imposed on procuring entities the duty to obtain internet access, absent proof that it was prohibitively difficult or impossible or that assistance from the relevant procurement service entity was sought.

Second, on the publication requirement, the Court agreed with the Ombudsman that a newspaper of “nationwide general circulation” must be a newspaper published for dissemination of local news and general information, with a bona fide subscription list, published at regular intervals, and available to the public in general. It held that nationwide general circulation must be satisfied as to the Philippines as a whole. It ruled that petitioners failed to submit evidence such as a publisher’s certification to support the claim. It also noted that they admitted limited circulation outside Mindanao, confined for advertising purposes to Cebu and Manila offices. The Court found persuasive the newspaper’s own website self-description describing it as a community newspaper focused on Mindanao circulation, although it had print copies and an internet presence aimed at broader audience reach. It added that petitioners did not show that the paper published legal notices like ITBs on its website.

Condonation Doctrine and the Nature of Gozalo’s Appointment

The Supreme Court held that the condonation doctrine did not apply to Gozalo. It relied on the established rule that the doctrine contemplates the complete extinguishment of liability for administrative offenses committed by elective officials who are later re-elected during their incumbency, where the electorate’s presumed knowledge justifies the extinguishment.

The Court reasoned that Gozalo was not an elective official during the questioned transaction. It noted t

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