Title
Parungao vs. Sandiganbayan
Case
G.R. No. 96025
Decision Date
May 15, 1991
Former municipal treasurer acquitted of malversation but convicted of technical malversation; Supreme Court reversed, citing improper charge and distinct crime elements.

Case Summary (G.R. No. 96025)

Factual Background

Petitioner served as Municipal Treasurer of Porac, Pampanga. The information charged him with malversation under Article 217 for allegedly taking, appropriating or converting PHP 185,250, funds released for the construction, rehabilitation, betterment and improvement (CRBI) of the Barangay Jalung Road. The petitioner pleaded not guilty.

Pre-trial Admissions and Defense Account

At pre-trial the petitioner admitted receipt on September 29, 1980 of PHP 185,250 from the Ministry of Public Works and Highways as the CRBI allocation for Barangay Jalung Road. He maintained, however, that he fully accounted for the amount by presenting vouchers and disbursement entries that reflected payment of PHP 126,095.59 for materials under two vouchers and PHP 59,154.41 for various labor payrolls at the insistence of the municipal mayor.

Trial Evidence

The prosecution presented six witnesses who attempted to show misappropriation because the road work remained unfinished despite the alleged exhaustion of the fund. The defense produced disbursement vouchers, entries in the Treasurer’s journal and a Certificate of Settlement from the Provincial Auditor’s Office showing audit conformity for the period covering the receipts and disbursements.

Ruling of the Sandiganbayan

The Sandiganbayan acquitted petitioner of malversation under Article 217, finding no evidence of appropriation to personal use. The court nonetheless convicted him of illegal use of public funds under Article 220, reasoning that petitioner applied PHP 59,154.41 to labor payrolls other than the particular project for which the fund had been allotted, which resulted in noncompletion of the Barangay Jalung project.

Petitioner's Contentions on Review

Petitioner contended that the Sandiganbayan erred in convicting him of an offense different from the one charged without complying with procedural safeguards. He argued that conviction for Article 220 could not be predicated in the same case where the information charged Article 217, and that material documents favorable to him were not duly considered.

Legal Issues Presented

The Supreme Court framed the principal legal questions as: whether the rule on variance as embodied in Rule 120, Sec. 4 and Sec. 5 authorized conviction for Article 220 when the information charged Article 217; whether Article 220 is included in or necessarily includes Article 217; and what procedural remedy should have been employed if the charged offense did not correspond to the established proof.

The Court’s Analysis on Variance and Inclusion

The Court emphasized the constitutional guarantee in Article III, Section 14(2), 1987 Constitution that the accused be informed of the nature and cause of the accusation and reiterated the general rule that conviction must be for the offense charged. It reviewed Rule 120, Sec. 4 and Sec. 5 on variance and concluded that an offense charged may only support conviction for another offense when one offense includes or is included in the other as defined in those provisions. Applying the statutory elements, the Court held that the essential elements of Article 217 (malversation by appropriation to personal use or permitting another to take public funds for personal use) differ from those of Article 220 (application of public funds to a public use other than that for which they were appropriated). The Court therefore found that technical malversation under Article 220 neither includes nor is included in malversation under Article 217.

Procedural Remedy Under Rule 119, Sec. 11

Because the offense proved did not correspond to the offense charged, the Court held that the Sandiganbayan should have followed Rule 119, Sec. 11, which provides that when it becomes manifest before judgment that a mistake has been made in charging the proper offense and the accused cannot be convicted of the offense charged or any offense necessarily included therein, the court shall not discharge the accused but shall commit him to answer for the proper offense and dismiss the original case upon filing a proper information. The Court deemed the Sandiganbayan’s direct conviction for Article 220 in the original malversation case to be procedurally erroneous.

The Court’s Exercise of Discretion to Reach the Merits

Although the ordinary remedy would have been to set aside the conviction and allow filing of a new information for Article 220 subject to prescription, the Court, mindful that the evidence adduced at the malversation trial would be identical to that in any subsequent technical malversation prosecution and to avoid imposing another trial upon the accused and burdening the courts, elected to decide the merits of the Article 220 charge. On that basis the Court examined whether the record established that petitioner diverted public funds to a public use other than that for which they were appropriated.

The Court’s Merits Determination and Disposition

The Court analyzed testimony, particularly that of the provincial witness who explained that the CRBI fund constituted a general allocation administered by the Department of Public Works and Highways and that the allocation to the Barangay Jalung Road arose from an internal arrangement between the Department and the barangay captain. The Court held that the record showed the money was spent for a public purpose, namely labor payments for public works, and that there was no law or ordinance specifically appropriating the CRBI fund exclusively for the concreting of Barangay Jalung Road. The Court therefore concluded that the elements of Article 220 were not satisfied. The petition was granted, the Sandiganbayan decision was reversed, and the petitioner was acquitted of illegal use of public funds.

Concurring and Dissenting Opinion of Justice Feliciano

Justice Feliciano concurred in setting aside the Sandiganbayan decision insofar as it convicted petitioner under Article 220 when charged under Article 217. He dissented, however, from the Court’s determination of the merits of an unfiled information. He argued that the Court should have set aside the Sandiganbayan ruling without prejudice to a new prosecution under Article 220, thereby allowing the

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