Title
Escobar vs. People
Case
G.R. No. 205576
Decision Date
Nov 20, 2017
Public officials conspired to falsify documents, misappropriating P300,000 in public funds for personal use, leading to convictions for estafa and malversation.

Case Summary (G.R. No. 205576)

Case Background

The Sandiganbayan found various petitioners guilty of crimes related to the malversation and estafa charges due to their involvement in the fraudulent release of public funds amounting to Three Hundred Thousand Pesos (₱300,000.00). The funds were allegedly disbursed as financial assistance to the Malungon Market Vendors Association, which was later proven to be a fictitious organization, with no request for aid made by its supposed leader, Nema Tamayo.

Criminal Charges and Arraignment

An Information filed against the petitioners described the fraudulent acts committed on May 27, 2002, in Sarangani. Upon arraignment, the involved individuals pleaded not guilty, with co-accused Margie Rudes being at-large, while Constantino had passed away leading to a dismissal of his case.

Prosecution Evidence

The prosecution's case was built on the testimonies of Commission on Audit Auditor Helen M. Cailing and several witnesses, notably Mary Ann G. Gadian, who revealed the creation of falsified documentation to facilitate the illegal release of funds. The evidence underscored that necessary approvals were not obtained, and documentation required under COA Circular No. 96-003 was omitted.

Defense Claims

The defense argued that several petitioners did not acquire the funds in trust nor received them directly. They contended that as public officers, they relied on the validity of the documents signed by their subordinates. Specifically, they claimed ignorance regarding the fraudulent nature of the transactions and asserted a lack of conspiracy among them.

Sandiganbayan Decision

The Sandiganbayan ruled against the petitioners, affirming that they committed estafa through falsification and malversation due to their failure to exercise due diligence. It determined that the necessary documentation was conspicuously missing and that there was substantial evidence of conspiracy among the accused.

Petitioners' Arguments on Appeal

In their appeal, the petitioners challenged the findings on various grounds, including the sufficiency of evidence regarding their direct involvement in the falsification and malversation. They posited that their conviction was influenced by the testimonies of co-conspirators whose credibility was questioned and that the Sandiganbayan had misapplied legal doctrines related to accountability and good faith reliance on subordinates.

Supreme Court Ruling

The Supreme Court affirmed the Sandiganbayan's decision, asserting that the elements of criminal negligence and conspiracy w

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