Case Summary (G.R. No. 130191)
Formation and Mandate of the Computerization Committee
In 1990, Davao City organized a Computerization Program Committee—chaired by de Guzman and including COA and city officials—to study hardware quality, vendor reputation, maintenance support, and system design requirements for the Local Automation Project.
Legislative Approval and Budget Appropriation
On November 5, 1990, City Council Resolution No. 1402 and Ordinance No. 173 authorized the SPI contract (P 11,656,810) and empowered Mayor Duterte to sign. Simultaneously, Resolution No. 1403 and Ordinance No. 174 appropriated P 3,000,000 for the project.
Contract Execution and Initial Disbursement
Pursuant to legislative authority, Duterte and de Guzman executed the contract and de Guzman released P 1,748,521.58 as downpayment to SPI on November 8, 1990.
Complaints and Civil Suit Dismissal
A citizen’s complaint (OMB-MIN-90-0425) was filed November 1990 but not acted on. In February 1991, a civil suit (RTC Davao Civil Case No. 20,550-91) challenged the resolutions and contract. On April 8, 1991, the council approved contract cancellation; on May 6, 1991, Duterte and SPI rescinded the agreement and refunded the downpayment. The civil suit was dismissed February 14, 1992, as moot and academic.
COA Special Audit Findings and Recommendations
COA Special Audit Report No. 91-05 (May 31, 1991) found: non-competitive negotiated contract violating PD 526 and PD 1445; insufficient appropriation; irregular 15% advance payment; 1,200% price disparity; absence of Information System Plan; and recommended contract rescission and compliance with NCC procurement circulars.
Subsequent Procurement and Additional Complaint
Following a second study, the National Computer Center recommended Philips computers (P 15,792,150), which Davao City procured. On August 1, 1991, Anti-Graft League-Davao City filed an unverified complaint (OMB-3-91-1768) alleging RA 3019 and other violations against city officials and SPI.
Irregular Ombudsman Investigation Procedures
Graft Investigator Manriquez, Nov 12, 1991, ordered petitioners to file comments on the dismissed civil case and the SAR without issuing affidavits or notifying petitioners of a formal preliminary investigation, contravening A.O. No. 07, Rule II Sec. 4 requirements. Copies of affidavits from the Special Audit Team (filed Dec 4, 1991) were not furnished.
Violation of Preliminary Investigation Requirements
Under A.O. No. 07, Rule II: unverified complaints or official reports require affidavits; respondents must be ordered to file counter-affidavits, not mere comments; only after evaluating affidavits can the investigator require counter-affidavits. Petitioners were deprived of this adversarial procedure and lacked knowledge of any ongoing preliminary investigation.
Inordinate Delay and Speedy Disposition Right
Four years elapsed (Feb 1992–Feb 1996) before information was filed. This delay violated the constitutional guarantee of speedy disposition (1987 Const., Art. III, Sec. 16) and due process. Jurisprudence (Tatad v. Sandiganbayan; Angchangco v. Ombudsman) condemns multi-year delays in preliminary investigations absent compelling justification.
Substantive Right to Preliminary Investigation
Preliminary investigation is a substantive component of due process, protecting the innocent from hasty prosecuti
...continue readingCase Syllabus (G.R. No. 130191)
Facts
- Petitioners Rodrigo R. Duterte (City Mayor) and Benjamin C. de Guzman (City Administrator) challenged Sandiganbayan orders denying their Motion to Quash and Motion for Reconsideration in Criminal Case No. 23193 for alleged violation of Section 3(g) of R.A. No. 3019.
- In 1990, Davao City launched the Local Automation Project, forming a Computerization Program Committee chaired by de Guzman to study, select, and implement computer hardware, software, and training.
- The Committee recommended Goldstar computers exclusively distributed by Systems Plus, Inc. (SPI); negotiation led to a P 11,656,810 contract approved by City Council Resolution No. 1402 and Ordinance No. 173, and funded in part by Supplemental Budget No. 07.
- A downpayment of P 1,748,521.58 was released on 8 November 1990; a citizen complaint was filed with the Office of the Ombudsman–Mindanao on 27 November 1990 but initially not acted upon.
- Civil Case No. 20,550-91 for nullity of resolutions and the contract was filed in February 1991 and dismissed as moot after the parties mutually rescinded the contract on 6 May 1991.
- A Special Audit by the Commission on Audit (SAR No. 91-05) submitted 31 May 1991 criticized procurement without competitive bidding, insufficient appropriation, impermissible advance payment, price discrepancies up to 1,200%, and absence of an Information System Plan.
- Davao City followed the audit recommendation, engaged the National Computer Center, and replaced the system with Philips computers costing P 15,792,150.
- On 1 August 1991, Anti-Graft League–Davao City filed Complaint OMB-3-91-1768 before the Ombudsman, alleging violations of R.A. No. 3019 and related laws.
- Graft Investigation Officer Manriquez directed petitioners on 12 November 1991 to file “verified point-by-point comment” on the dismissed civil complaint and on SAR No. 91-05; petitioners complied, but were not served any affidavits.
- Four years later, on 8 February 1996, Special Prosecution Officer De Guzman recommended dismissal of malversation and Section 3(e) charges but urged filing under Section 3(g) for a grossly disadvantageous contract.
- An Information was filed on 8 February 1996 before the Sandiganbayan alleging conspiracy to enter into an overpriced, non-bidded computer contract of P 11,656,810.
- Petitioners filed motions arguing deprivation of preliminary investigation, inordinate delay, good faith and authority, and absence of a continuing contract, all denied by the Ombudsman and Sandiganbayan.
- On 4 September