G.R. No. 176546 - Ong vs. People

Case Summary (G.R. No. 176546)

Factual Background

Petitioner, as Mayor of Angadanan, appropriated funds for and procured an Isuzu dump truck bearing Plate No. T-BBB-206 on August 12, 1996 for municipal use, paying P750,000.00 to Josephine Ching of J.C. Trucking as evidenced by a Deed of Absolute Sale. Complainants included petitioner’s successor, Mayor Diosdado Siquian, and several Sangguniang Bayan members who alleged that the acquisition was grossly overpriced, that no public bidding or Sanggunian resolution was obtained, and that the truck was reconditioned and inferior in quality.

Complaint and Preliminary Investigation

On March 26, 1997 a letter-complaint was filed before the Office of the Ombudsman alleging malversation and other irregularities, including the dump truck purchase. Graft Investigation Officer I Germain G. Lim initially found no probable cause on August 14, 1997; upon reconsideration, petitioner was indicted for violation of Section 3(e) of RA No. 3019 in connection with the acquisition.

Information and Arraignment

The Information, dated November 21, 1997, charged that petitioner, “taking advantage of her official position and committing the offense in relation to her office, acting with manifest partiality, evident bad faith or gross inexcusable negligence,” caused undue injury by approving the acquisition without public bidding at P750,000.00 when a similar vehicle could have been procured for not more than P500,000.00, to the damage of the Municipality in the amount of P250,000.00. Petitioner was arraigned on January 12, 1999 and pleaded not guilty.

Trial Evidence for the Prosecution

The prosecution presented testimony and documentary exhibits showing comparative prices and the condition of the truck. Ramon De Guzman Sevilla, sales manager of Christian Motor Sales, testified that ten-wheeler military-type Isuzu dump trucks ranged from P190,000.00 to P490,000.00. Complainant Sangguniang Bayan members testified that no public bidding or Sanggunian resolution was secured, the truck appeared reconditioned with worn tires and an old battery, and that canvasses from other suppliers evidenced better quality trucks costing no more than P500,000.00. Price quotations from Tagumpay Motorworks, Del Rosario Motorworks and Dasig Motorworks were offered.

Defense Evidence and Contentions

Petitioner testified that the municipality appropriated P1,000,000.00 for the truck, that the P750,000.00 purchase was a negotiated acquisition from J.C. Trucking pursuant to COA Resolution Nos. 95-244 and 95-244-A which purportedly removed the need for public bidding for negotiated purchases not exceeding P10,000,000.00, that the truck was inspected by a COA Regional Engineer and declared fit and in good running condition, and that COA did not issue a notice of disallowance.

Sandiganbayan Findings and Disposition

The Sandiganbayan found petitioner guilty beyond reasonable doubt of violating Section 3(e) of RA No. 3019, holding that petitioner was a public officer discharging official functions, that she acted with gross and inexcusable negligence by procuring the truck without public bidding or Sanggunian approval, and that undue injury to the municipality and unwarranted benefit to Josephine Ching were proven. The court sentenced petitioner to imprisonment under the Indeterminate Sentence Law, ordered perpetual disqualification from public office, and directed petitioner to return P250,000.00.

Issues on Appeal

Petitioner urged that she did not act with manifest partiality, evident bad faith or gross inexcusable negligence, that she caused no undue injury or unwarranted benefit, and that the negotiated purchase was valid under COA Resolution Nos. 95-244 and 95-244-A. The appeal challenged the Sandiganbayan’s factual findings and legal conclusions.

Standard of Review on Questions of Fact

The Court reiterated the settled rule that factual findings of the Sandiganbayan are conclusive unless they are grounded entirely on speculation, the inference is manifestly mistaken, there is grave abuse of discretion, or the findings are based on misapprehension of facts or absence of evidence contradicted by the record, citing Suller v. Sandiganbayan and Albert v. Sandiganbayan as authority for that standard. The Court found none of these exceptions present.

Application of Section 3(e) of RA No. 3019

The Court stated the elements of Section 3(e) of RA No. 3019 as requiring that the accused be a public officer discharging administrative or official functions, that the accused acted with manifest partiality, evident bad faith or gross inexcusable negligence, and that such action caused undue injury to any party or gave unwarranted benefits. The Court concluded that all elements were established: petitioner was a municipal mayor; she bypassed public bidding and Sanggunian approval; and her negligence resulted in undue injury and an unwarranted benefit.

Compliance with Procurement Law

The Court interpreted COA Resolution Nos. 95-244 and 95-244-A as implementing guidelines that must be read together with Title VI, Book II of RA No. 7160. It explained that Section 356 prescribes competitive bidding as the general rule and that Section 366 enumerates exceptions, including negotiated purchase, which Section 369 further qualifies by requiring that negotiated purchase may be resorted to only where public bidding has failed for two consecutive times and no suppliers qualified, and that the contract be approved by the Sanggunian. The Court held that petitioner failed to show compliance with these statutory requisites and therefore could not validly dispense with public bidding.

Sufficienc

Case Syllabus (G.R. No. 176546)

Parties and Procedural Posture

FELICITAS P. ONG, PETITIONER was the municipal mayor of Angadanan, Isabela at the time of the transactions complained of.
THE PEOPLE OF THE PHILIPPINES, RESPONDENT prosecuted the criminal case for violation of Section 3 (e) of Republic Act No. 3019.
A complaint was filed before the Office of the Ombudsman by petitioner’s successor and several Sangguniang Bayan members on March 26, 1997 alleging irregularities in the purchase of a dump truck.
A Graft Investigation Officer initially found no probable cause but the case was subsequently indicted for violation of Sec. 3 (e), R.A. No. 3019 by Information dated November 21, 1997.
The petitioner was arraigned and pleaded not guilty on January 12, 1999.
The Sandiganbayan convicted petitioner on November 13, 2006 and denied reconsideration on February 2, 2007.
The Supreme Court, with the ponencia by Ynares-Santiago, J., resolved the petition for review and affirmed the Sandiganbayan decision in the judgment under review.

Key Factual Allegations

The Municipality of Angadanan appropriated P1,000,000 for the purchase of a dump truck in 1996.
The subject Isuzu dump truck with Plate No. T-BBB-206 was purchased on August 12, 1996 for P750,000 from Josephine Ching of J.C. Trucking as evidenced by a Deed of Absolute Sale.
The purchase was made without public bidding and without a prior resolution by the Sangguniang Bayan.
Complainants and Sangguniang Bayan members testified that the truck was reconditioned and showed signs of wear including worn tires and an old battery.
Price quotations and testimony indicated that similar or better quality dump trucks could have been obtained for not more than P500,000.
The prosecution alleged resulting damage to the municipality in the amount of P250,000 due to alleged overpricing.

The Charge

The Information charged petitioner with violation of Section 3 (e) of Republic Act No. 3019 by allegedly causing undue injury to the Municipality of Angadanan and giving unwarranted benefit to a private party through manifest partiality, evident bad faith, or gross inexcusable negligence.
The Information specifically alleged that petitioner caused and approved the acquisition without public bidding of the Isuzu dump truck for P750,000 when a similar vehicle could have been bought for no more than P500,000.

Evidence at Trial

The Deed of Absolute Sale and the truck’s plate number were admitted into evidence to establish the purchase.
Ramon De Guzman Sevilla testified that the cost of a comparable ten-wheeler Isuzu dump truck ranged from P190,000 to P490,000.
Sangguniang Bayan witnesses Ruben P. Lappay and Mirasol P. Lappay testified regarding absence of bidding, absence of a Sangguniang Bayan resolution, the truck’s poor condition, and canvass results showing prices not exceeding P500,000.
Petitioner presented testimony that a Regional Engineer from the Commission on Audit inspected the truck and declared it fit and in good running condition.
Petitioner relied on COA Resolution Nos. 95-244 and 95-244-A as authorizing negotiated purchases without public bidding in amounts not exceeding P10,000,000.
Annexes of price quotations from Tagumpay Motorworks, Del Rosario Motorworks and Dasig Motorworks were received to show prevailing market prices.

Issues Presented

Whether the Sandiganbayan erred in finding petitioner guilty beyond re