Title
People vs. Nicasio M. PeAa, Camacho L. Chiong, and Eugenio L. Famor
Case
G.R. No. 248710
Decision Date
Mar 29, 2023
Accused public officials charged with graft for irregular appointment and salary payments of unqualified employee; court ruled no bad faith or conspiracy, reversing conviction and acquitting them.
unwarranted benefits
violation
public office
A

Case Summary (G.R. No. 248710)

Factual Background

The Province of Zamboanga Sibugay commenced corporate existence on July 1, 2001 pursuant to RA 8973. As then Vice‑Governor, Eugenio L. Famor appointed Nicasio M. Pena as Secretary of the Sangguniang Panlalawigan on July 2, 2001. On recommendation of Pena, Camacho L. Chiong was appointed Board Secretary IV effective October 1, 2001 under the Office of the Provincial Board Secretary. The position required among other things a bachelor’s degree. Chiong was a college undergraduate and lacked the prescribed educational qualification. The Provincial Human Resource Management Office (PHRMO) could not locate Chiong’s 201 file; a photocopy of an appointment front page was produced by Chiong’s daughter. The PHRMO learned that Chiong’s appointment paper was not submitted to the Civil Service Commission (CSC). An anonymous letter prompted a fact‑finding investigation by Atty. Maca‑ampao, who reported that Chiong’s appointment was spurious, that he was not qualified, and that salaries totaling approximately P161,565.30 had been collected. Chiong resigned May 3, 2002 and was appointed coterminous Private Secretary II on May 6, 2002.

Procedural History

The Ombudsman found probable cause on March 17, 2003 and an Information was filed on June 6, 2006 charging the three accused with violation of Section 3(e) of RA 3019 for conspiring to issue a permanent appointment to Chiong without required processing, thereby granting unwarranted benefits amounting to P161,563.30. The accused pleaded not guilty. The Sandiganbayan issued a Pre‑Trial Order on February 17, 2014 and later, after trial, rendered a Decision dated March 29, 2019 convicting all three for violation of Section 3(e), imposing an indeterminate penalty and perpetual disqualification from public office, and ordering joint and several indemnity of P161,563.30. The accused appealed to the Supreme Court under separate dockets, which consolidated review and issued the appealed decision dated March 29, 2023.

Evidence for the Prosecution

The prosecution presented testimony of PHRMO personnel and the Provincial Budget Officer. Nelsie Patriarca Lazo testified that Chiong’s original appointment paper was never seen by the PHRMO and that payroll and disbursement supporting documents for Chiong’s first salary were routed to the Provincial Budget Office and Provincial Accountant without PHRMO processing. Ester Yukoya, Personnel Officer, testified she informed Vice‑Governor Famor that Chiong’s appointment had not been submitted to the CSC, and that Famor angrily disclaimed appointing Chiong to a high post. Rosanna T. Palalon, Provincial Budget Officer, testified that payrolls and disbursement vouchers were prepared by the office concerned and that a Personnel Schedule listing Chiong was prepared sometime in October 2001.

Defense Case and Contentions

Famor testified that he signed appointment papers as endorsers and instructed appointees to forward papers to the PHRMO; he claimed no knowledge that Chiong’s appointment was not submitted to the PHRMO or that Chiong lacked required educational qualifications. Pena argued his recommendation was not illegal and that the absence of a constituted Personnel Selection Board (PSB) in the newly created province meant PSB screening was not performable; he stressed his role was recommendatory. Chiong maintained he submitted his appointment to the PHRMO, that he actually rendered service, and that he was a de facto officer entitled to salary for services rendered.

Sandiganbayan’s Findings and Rationale

The Sandiganbayan concluded that the three acted in concert to confer unwarranted benefit on Chiong. It found that Pena recommended an unqualified candidate, Famor blindly appointed him without convening the PSB, and Chiong concealed his appointment from the PHRMO. The court held these acts manifested evident bad faith and manifest partiality and caused injury to the provincial government by the payment of P161,563.30 in salaries. The Sandiganbayan relied on the 1998 CSC Omnibus Rules on Appointments, the 2001 Revised Policies on Merit Promotion Plan, constitutional provisions on merit and fitness, and the Administrative Code.

Issue Presented on Appeal

Whether the Sandiganbayan erred in finding the accused‑appellants guilty beyond reasonable doubt of violating Section 3(e) of RA 3019.

Governing Legal Standard

The Court reiterated the elements of Section 3(e) of RA 3019: the offender must be a public officer; the act must be in the discharge of official, administrative, or judicial functions; the act must be through manifest partiality, evident bad faith, or gross inexcusable negligence; and the public officer must have caused undue injury to any party including the Government, or given any private party unwarranted benefits, advantage or preference. The Court emphasized the presumption of good faith in public officers and the high burden on the prosecution to establish evident bad faith beyond reasonable doubt.

Supreme Court’s Overriding Conclusions

The Supreme Court granted the appeals and reversed and set aside the Sandiganbayan Decision and Resolution. The Court found that conspiracy was not proven beyond reasonable doubt and that the requisite element of evident bad faith was absent as to each accused. The Court emphasized that administrative lapses and procedural irregularities do not ipso facto establish criminal corruption under Section 3(e).

Analysis as to Conspiracy

The Court explained that conspiracy requires a conscious agreement to commit a felony. Although conspiracy may be inferred from conduct, the inference must be supported by sufficiently strong evidence of a community of criminal design. The Court found the Sandiganbayan’s theory of concerted action unpersuasive. Spontaneous hostile remarks by Famor and the absence of overt acts showing common criminal intent undermined the finding of conspiracy. The Court also noted that other functionaries whose actions were indispensable to the release of salaries — PBO staff, Palalon, Torres, and PHRMO personnel — were not impleaded, which weakened any inference of a collective criminal design among the accused.

Application to Chiong

The Court held that the element of action in the discharge of official functions and evident bad faith was not established against Chiong. It observed that under the 1998 CSC Omnibus Rules on Appointments the PHRMO bore principal responsibility to review and transmit appointments and to ensure qualification standards. It found that the record did not support the conclusion that Chiong intentionally concealed his appointment to deceive the PHRMO or the CSC. The Court applied the equipoise rule and resolved reasonable doubts in favor of Chiong. The Court further held that, under Rule VI, Section 3 of the 1998 Rules, an appointment disapproved for failure to meet qualification standards remains effective until disapproved by the CSC and that the appointee is entitled to payment for services rendered. For these reasons, Chiong’s receipt of salary did not constitute an “unwarranted benefit” or cause “undue injury” within the meaning of Section 3(e).

Application to Pena

The Court found that Pena’s act in recommending Chiong did not demonstrate evident bad faith or manifest partiality as legally required for conviction under Section 3(e). The Court observed that recommendations are not prohibited by the cited constitutional and administrative provisions unless they implicate nepotism as expressly defined. The Court characterized the recommendation as a recommendatory act that was not the proximate cause of the salary payments. It emphasized that the PHRMO had the duty to verify qualifications and that Pena relied on the Personnel Schedule and the apparent processing by the PHRMO. The Court concluded that the government did not sustain the element of undue injury attributable to Pena.

Application to Famor

The Court held that Famor’s signature on an appointment form did not, without more, establish evident bad faith. The Court explained that the vice‑governor’s powe

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