Case Summary (G.R. No. 162025)
Summary of Facts
The Department of Budget and Management (DBM) allocated a total of P100 million, called National Aid for Local Government Units (NALGU), to Tarlac Province for decentralization initiatives during President Corazon C. Aquino's term. Governor Ocampo, during his tenure from February 22, 1988, to June 30, 1992, lent out P56.6 million to LTFI for livelihood projects under a Memorandum of Agreement (MOA) signed on August 8, 1988. Notably, Ocampo had resigned from LTFI before this agreement.
Legal Proceedings
The Sandiganbayan's March 8, 2002 Decision declared both petitioners guilty of malversation in two criminal cases (Crim. Case Nos. 16794 and 16795) based on their misuse of public funds associated with the NALGU allocation. The cases stemmed from the irregularities in the management and accounting of the NALGU funds, particularly concerning the loaned amount to LTFI and related expenditures.
Criminal Charges
Crim. Case No. 16794 involved claims that Ocampo, as Governor, misused P8,860,000 intended for embroidery machines, alleging that a balance of P1,180,496.48 was unaccounted for after the funds were improperly utilized. Crim. Case No. 16795 alleged that Ocampo and Flores withdrew P58,000 from LTFI's bank account, again claiming misappropriation of funds without proper expenditure records.
Evidence and Audit Findings
The prosecution's case largely hinged on a Commission on Audit report, which traced the financial flow related to the NALGU funds. The audit detailed substantial discrepancies in LTFI’s financial transactions related to funds earmarked for the embroidery machines, with substantial amounts unaccounted for or misappropriated.
Sandiganbayan's Findings
The Sandiganbayan asserted that Ocampo’s failure to establish adequate safeguards for funds, as mandated by law, constituted gross negligence, rendering him liable for malversation, even in the absence of direct monetary misappropriation. It held that the mere fact of negligence permitted others (Flores) to misappropriate funds. Flores was found liable for his direct involvement in the management of the funds.
Petitioners’ Defense
The defense posited that the funds became private upon loaning to LTFI, arguing that ownership transferred to LTFI, thus removing the public nature of the funds and exempting them from malversation. Ocampo contended he had resigned from LTFI prior to the loans and therefore should not be held accountable for LTFI's subsequent transactions, while Flores claimed he acted appropriately in managing the funds.
Resolution of the Supreme Court
Upon appeal, the Supreme Court concurred with the petitioners' arguments, emphasizing that the nature of the transacti
...continue readingCase Syllabus (G.R. No. 162025)
Case Overview
- This case involves consolidated petitions for review on certiorari by Mariano Un Ocampo III and Andres S. Flores against the People of the Philippines, arising from a decision and resolution of the Sandiganbayan.
- The petitions challenge the Sandiganbayan's ruling that found both petitioners guilty of malversation of public funds under Criminal Case Nos. 16794 and 16795.
Background Facts
- The case occurred during the presidency of Corazon C. Aquino, when Tarlac Province was selected as a pilot province for local government decentralization.
- The Department of Budget and Management (DBM) allocated P100 million in National Aid for Local Government Units (NALGU) funds to Tarlac for local projects.
- Mariano Un Ocampo III, serving as the provincial governor from February 22, 1988, to June 30, 1992, lent P56.6 million of these funds to the Lingkod Tarlac Foundation, Inc. (LTFI) to implement various livelihood projects.
- The loan was formalized through a Memorandum of Agreement (MOA) signed on August 8, 1988, between Ocampo and LTFI, with Ocampo serving as the chairperson of LTFI and Andres S. Flores as its executive director.
Legal Proceedings
- The Sandiganbayan's resolution on January 6, 2000, acknowledged that Ocampo had resigned from LTFI before the MOA was signed.
- The prosecution initiated 25 criminal cases against Ocampo regarding the management of the P56.6 million, resulting in a series of dismissals and acquittals for various charges.
- The remaining charges, specifically in Criminal Case Nos. 16794 and 16795, were ultimately adjudicated in the Sandiganbayan's decision on March 8, 2002.
Charges and Allegations
- Crim. Case No. 16794: Ocampo was accused of releasing P8,860,000 for the importation of Juki