Title
Quarto vs. Marcelo
Case
G.R. No. 169042
Decision Date
Oct 5, 2011
DPWH officials implicated in P143M misuse case; respondents granted immunity for testimony against petitioner; SC upheld Ombudsman's discretion.

Case Summary (G.R. No. 169042)

Factual Background and Investigative Process

Investigation was initiated into alleged anomalous transactions involving emergency repairs and purchase of spare parts for DPWH service vehicles in 2001, revealing a pattern of ghost repairs and falsified documents, causing government losses approximating ₱143 million within ten months. The documentary process for repairs involves job orders, pre- and post-repair inspections by the SIT, requisitions for supplies, certificates of urgency and fairness, acceptance certificates, and disbursement authorizations. The audit found many repairs never transpired though claims were approved and paid.

Charges and Position of the Parties

Complaint-affidavits filed with the Ombudsman charged several DPWH officials and employees, including petitioner Quarto and SIT members (respondents), with plunder, estafa, falsification, and violation of RA 3019. Petitioner denied wrongdoing, claiming reliance on subordinates’ reports. Respondents admitted irregularities but alleged attempts to resist the fraudulent practices, describing coercion and the practical difficulties encountered processing thousands of repairs annually, which led them to sign inspection reports without actual inspections. Respondents volunteered to testify in exchange for immunity.

Ombudsman’s Actions and Petitioner’s Petition

The Ombudsman filed criminal informations on various officials but granted immunity to the respondents to utilize their testimonies for prosecuting other accused individuals. Petitioner challenged the grant of immunity and the exclusion of respondents from the charges, filing a certiorari and mandamus petition before the Supreme Court after the Sandiganbayan dismissed his initial petition.

Petitioner’s Arguments

Petitioner asserts that respondents’ pre- and post-repair inspection reports were essential for committing the crimes and thus they should have been charged; excluding them constitutes selective prosecution and grave abuse of discretion by the Ombudsman. He argues the respondents must first be included in the informations and then discharged by the court as state witnesses under Section 17, Rule 119, which requires the witness not to be the “most guilty” and that their testimony is absolutely necessary. Petitioner claims these requirements were not met.

Ombudsman and Respondents’ Counterarguments

The Ombudsman insists that RA No. 6770 explicitly authorizes granting immunity as a prosecutorial prerogative distinct from the court’s functions; the Rules of Court provision invoked by petitioner presupposes a witness already charged, which is not the case here. The Ombudsman’s discretion should not be interfered with absent grave abuse. The respondents maintain the Ombudsman’s discretion to include or exclude accused is broad and petitioner failed to demonstrate grave abuse of discretion.

Supreme Court’s Findings on Procedural Prerequisites

The Court dismissed the petition for failure to exhaust available remedies such as filing motions for reconsideration before the Ombudsman or for inclusion of respondents in the informations prior to petitioning the Court. The petition was also filed beyond the 60-day reglementary period from the challenged resolutions’ notice. These procedural missteps are fatal to the petition.

Supreme Court’s Analysis on the Nature of Immunity and Prosecutorial Discretion

The Court emphasized the constitutional and statutory independence of the Ombudsman with broad investigatory and prosecutorial powers, including discretionary authority to grant immunity from prosecution under RA No. 6770. The grant of immunity is an executive function, not a judicial prerogative, and allows the Ombudsman to secure testimony necessary to prosecute greater offenders effectively.

The Court explained the rationale of immunity laws as a balance between the state’s interest in securing needed testimony and the constitutional right against self-incrimination, noting immunity statutes are legislative prerogatives allowing immunity in exchange for cooperation. The Ombudsman’s power to grant immunity is broad but must consider the pertinent Rules of Court provisions as guidelines rather than binding limitations.

Extent and Limits of Judicial Review Over Immunity Grants

The Court stated that review of the Ombudsman’s exercise of discretion is limited to instances of grave abuse, defined as capricious or whimsical exercise of discretion, refusal or evasion of duty, or action without legal basis. The Court is mindful that immunity grants affect significant individual rights and that the Ombudsman is better positioned to evaluate evidentiary necessities and who is the “most guilty.” Courts defer to the Ombudsman unless a clear grave abuse is shown.

Assessment of the Respondents’ “Absolute Necessity” and “Most Guilty” Status

The Court found petitioner failed to prove the absence of “absolute necessity” of respondents’ testimony, which directly contradicts petitioner’s claim of good faith reliance on subordinates by revealing their role in the fraudulent processes. The respondents’ admissions and explanations include attempts to resist anomalies and impediments they faced.

Regarding the “most guilty” criterion, the respondents’ involvement—signing inspection reports under challenging conditions and resorting to practical shortcuts—does not make them the foremost offenders. The Court noted the petitioner’s silence on co

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