Title
Department of Fice-Revenue Integrity Protection Service vs. Yambao
Case
G.R. No. 220632
Decision Date
Nov 6, 2019
Customs officer accused of unexplained wealth and SALN violations; Ombudsman dismissed charges, upheld by Supreme Court due to insufficient evidence and lack of grave abuse of discretion.
falsification of public documents
perjury
lifestyle check
A

Case Summary (G.R. No. 220632)

Factual Background

DOF-RIPS was created through Executive Order No. 259 (Series of 2003) to conduct lifestyle checks, investigate graft and corruption allegations, and, when warranted, file complaints against officials and employees of the Department of Finance and its attached agencies. Acting under this mandate, DOF-RIPS conducted an investigation on Yambao’s lifestyle, assets, and properties acquired during her tenure at the Bureau of Customs. It relied on a comparative analysis between Yambao’s Statements of Assets, Liabilities, and Net Worth (SALNs) and her reported expenditures, asserting that: (one) Yambao did not file her SALNs for 2000 and 2003; (two) her wealth was grossly disproportionate to her income; and (three) across the years, she made false, misleading, and incomplete SALN disclosures.

DOF-RIPS presented tabulated figures of Yambao’s total net worth from 2004 to 2009, showing an increase in declared assets and net worth across those years, together with corresponding liabilities. In summarizing the allegations, DOF-RIPS pointed to large purchases and travel expenses allegedly inconsistent with Yambao’s salary levels, including residential real property acquisitions, a house purchased through loans, the acquisition of a vehicle, cash holdings, jewelry, and foreign travels, as well as alleged inconsistencies in declared dates of acquisition and alleged misrepresentation regarding business interests and a piggery farm.

The complaint further alleged that Yambao: declared business/financial interest connected with “Arnold L. Cruz Customs Brokerage”, despite alleged verification that the brokerage had no permit to operate in Manila from 2006 to present; disclosed conflicting employment information for her husband, Cesar Yambao; and allegedly misdeclared operation of a piggery farm in Sto. Cristo, Pulilan, Bulacan to conceal unexplained wealth.

Ombudsman Proceedings and Dismissal

After the filing of the complaint-affidavit, the Ombudsman issued a Joint Resolution dated December 28, 2012 dismissing the charges. On the allegation that Yambao did not file her SALNs in 2000 and 2003, the Ombudsman found the evidence presented by DOF-RIPS insufficient, especially when weighed against Yambao’s evidence that she actually filed the SALNs. The Ombudsman considered the October 1, 2010 Certification issued by the Human Resource Management Division of the Bureau of Customs and reasoned that the Human Resource Management Division was not the repository of SALNs. It also noted that Yambao submitted proof of filing, supported by stamps showing receipt by the Bureau of Customs. DOF-RIPS did not meaningfully refute these points.

On the allegation that Yambao falsified her SALNs, the Ombudsman found Yambao’s disclosures substantially true or compliant with the law and held that DOF-RIPS did not establish deliberate intent to falsify. On the charge of unexplained wealth in alleged violation of Republic Act No. 1379, the Ombudsman found that DOF-RIPS did not substantiate the essential allegation that Yambao was the only breadwinner and that she had no lawful sources for her wealth. The dismissal thus rested on the Ombudsman’s conclusion that the evidence did not meet the threshold for probable cause.

Motion for Reconsideration and Denial

DOF-RIPS filed a Motion for Reconsideration, which the Ombudsman denied through a Joint Order dated July 20, 2015. Dissatisfied, DOF-RIPS proceeded to file a petition for certiorari before the Supreme Court, contending that the Ombudsman acted with grave abuse of discretion in disregarding jurisprudential parameters for determining probable cause.

The Parties’ Contentions on Certiorari

In this petition, DOF-RIPS asserted that the Ombudsman disregarded evidence which, in its view, established a prima facie presumption of ill-gotten wealth that Yambao failed to overturn. It maintained that preliminary investigation only requires evidence that may “engender well-grounded belief” that an offense was committed and that the accused was probably guilty.

DOF-RIPS prayed that the Ombudsman’s joint resolution and joint order be reversed and that the Ombudsman be directed to file informations for alleged violations of: (one) Section 9 in relation to Section 11 of Republic Act No. 6713; (two) Section 7 of Republic Act No. 3019; (three) Articles 171(4) and 183 of the Revised Penal Code; and (four) Republic Act No. 1379.

For its part, the Ombudsman and Yambao opposed the petition. The Supreme Court treated the sole issue as whether the Ombudsman committed grave abuse of discretion in ruling that no probable cause existed for any of the charged offenses.

Supreme Court’s Ruling on Grave Abuse of Discretion

The Supreme Court dismissed the petition. It reiterated the doctrine that special civil actions for certiorari under Rule 65 do not correct mere errors of fact or law unless the error amounts to grave abuse of discretion. It further emphasized that, as a general rule, courts do not interfere with the Ombudsman’s determination of probable cause absent a showing that it acted in an “arbitrary, capricious, whimsical, or despotic manner.”

In support of deference, the Court cited the explanation in Dichaves v. Office of the Ombudsman, underscoring that the Ombudsman is an independent constitutional body that has the sole power to determine probable cause. The Court viewed probable cause determination as highly factual and within the Ombudsman’s competence, as the Ombudsman is better positioned to assess the strengths and weaknesses of evidence needed for a finding of probable cause. The Court also cited Republic v. Ombudsman Desierto, reasoning that allowing routine judicial review of dismissals in investigatory proceedings would unduly burden the courts and hamper the Ombudsman’s prosecutorial discretion.

Applying those standards, the Court found no grave abuse of discretion in the Ombudsman’s reasoning. It noted that the Ombudsman carefully considered the evidence in the case records and grounded its conclusions on those records.

Legal Basis and Reasoning

On the allegation of non-filing of SALNs for 2000 and 2003, the Supreme Court affirmed that the Ombudsman did not credit DOF-RIPS’s evidence. The Ombudsman had relied on the Human Resource Management Division’s certification that it did not function as the repository of SALNs and on Yambao’s proof of filing, including stamps evidencing receipt by the Bureau of Customs. The Supreme Court observed that DOF-RIPS did not sufficiently refute this proof.

On the alleged falsification of SALNs, the Supreme Court sustained the Ombudsman’s findings that Yambao’s disclosures appeared substantially true or compliant and that DOF-RIPS failed to prove deliberate intent to falsify. The Court recognized that differences and alleged inaccuracies were evaluated by the Ombudsman with attention to whether they reflected intent to falsify rather than mere reporting discrepancies.

On the unexplained wealth theory under Republic Act No. 1379, the Court noted that DOF-RIPS’s attempt to establish that Yambao was the only breadwinner relied only on SALNs and service records. The Ombudsman had found that the SALNs themselves showed Yambao’s husband was engaged in custom brokerage work, particularly associated with Arnold L. Cruz Customs Brokerage, and that DOF-RIPS thus failed to establish the factual premise needed for the unexplained wealth charge. The Ombudsman also found supporting evidence from affidavits of the brokerage owner, Cruz, confirming her husband’s gainful employment and the receipt of income. Although the Ombudsman acknowledged that the affidavits could be self-serving, it ruled that in the absence of countervailing evidence, the evidence retained enough weight to defeat the claimed sole-breadwinner theory.

DOF-RIPS further argued that the Ombudsman gravely abused its discretion by disregarding a Bureau of Permits certification that the brokerage had not operated in Manila since 2006. The Supreme Court agreed with the Ombudsman that the certification, standing alone, did not prove that Yambao’s husband was unemployed and had no income. It noted that the certification only stated that no business permit was issued to the brokerage entity to operate in Manila from CY 2006 to present, and it found it insufficient to negate the affidavits regarding her husband’s income. The Ombudsman also considered Cruz’s explanation that no mayor’s permit was required for the brokerage arrangements under the relevant regulatory understanding and that permits were obtained by another entity for the customs business operations conducted at the specified Manila address. The Court accepted the Ombudsman’s conclusion that DOF-RIPS did not supply adequate evidence to establish that her husband had no income.

Regarding the alleged perjury arising from declaring the brokerage as business interest, the Supreme Court upheld the Ombudsman’s view that the declaration was not shown to be perjurious. The Ombudsman had reasoned that Yambao declared the brokerage based on her understanding that her husband worked with it or derived income from it, including periods when he was described as self-employed yet still allowed to free-lance with clients of the brokerage. The Court found that DOF-RIPS failed to demonstrate the deliberate and knowing falsity needed for perjury and falsification.

On the overall unexplained wealth theory, the Supreme Court observed that the Ombudsman evaluated the evidence and compared the enumerated acquisitions, investments, and expenses against Yambao’s declared official remuneration and other supporting explanations. It also noted that neither party submitted her husband’s income tax returns, and the Ombudsman treated the burden of proof as resting on the accusing party. The Court sustained the Ombudsman’s finding that DOF-RIPS failed to show which specific acquisitions or expenses were extravagant or lavish,

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