EN BANC
February 12, 2019
G.R. No. 219824-25
PEOPLE OF THE PHILIPPINES, Petitioner
vs.
HONORABLE SANDIGANBAYAN (First Division), MARIO L. RELAMPAGOS, MARILOU D. BARE, ROSARIO S. NUNEZ and LALAINE N. PAULE, Respondents
D E C I S I O N
REYES, J. JR., J.:
Through a Petition for Certiorari1 under Rule 65 of the Rules of Court, petitioner People of the Philippines, represented by the Office of the Ombudsman (Ombudsman) through the Office of the Special Prosecutor, seeks to partially nullify the (1) Resolution2 dated May 13, 2015 of the Sandiganbayan (First Division) in Criminal Case Nos. SB-15-CRM-OO 17 for violation of Section 3(e) of Republic Act (R.A.) No. 3019 and SB-15-CRM0020 for violation of Article 21 7 of the Revised Penal Code (RPC), or malversation of public funds, insofar as it dismissed the said criminal cases against herein respondents; and (2) Resolution3 dated July 9, 2015 insofar as it denied petitioner's motion for partial reconsideration.4
The Facts
Following the disclosure by Benhur Luy (Luy) of the "pork barrel scam" or "PDAF scam" perpetrated through a scheme that utilizes the Priority Development Assistance Fund (PDAF) allocated to the members of the Congress, the National Bureau of Investigation (NBI) filed a complaint against then Congressman Constantino G. Jaraula (Jaraula) and several other public officers, which included Mario L. Relampagos (Relampagos) as then Undersecretary for Operations, Rosario S. Nufiez (Nuñez), Lalaine N. Paule (Paule) and Marilou D. Bare (Bare) (collectively, Relampagos, et al.), assigned to the Office of the Undersecretary for Operations, all of the Department of Budget and Management (DBM), for malversation of public funds, direct bribery, corruption of public officials and violation of Section 3, paragraphs (b), (e), (g) and U), and Section 4 of R.A. No. 3019.
As uncovered by the NBI, the scheme begins with either the lawmaker or Janet Lim Napoles (Napoles) commencing negotiations for the use of the PDAF. They would then agree on the projects, the Napoles-controlled nongovernmental organization (NGO) which would implement the project and the implementing agency through which the project shall be coursed. 5
Luy would then prepare a "listing" containing the list of projects to be implemented by the NGO, the implementing agency and the project cost. The lawmaker would then adopt the "listing" and shall then request the Senate President and the Finance Committee Chairperson (in case of a Senator), or to the House Speaker and Chair of the Appropriations Committee (in case of a Congressman), for the release of his allocation. The request shall then be endorsed by the Senate President or the Speaker, as the case may be, to the DBM.6
The DBM shall then issue a Special Allotment Release Order (SARO), and later, a Notice of Cash Allocation (NCA), to the implementing agency. Thereafter, the lawmaker shall endorse the Napoles-controlled NGO to the implementing agency. A memorandum of agreement covering the project to be undertaken shall then be executed between the lawmaker, the implementing agency and the Napoles-controlled NGO. The implementing agency then releases the check to the NGO, the proceeds of which shall thereafter be withdrawn by Napoles. 7
Among the implementing agencies mentioned by Luy was the Technology Resource Center (TRC), which allegedly transferred funds to Countrywide Agri and Rural Economic Development Foundation, Inc. (CARED), a Napoles-controlled "dummy" NGO. 8
The NBI also presented records from the Commission on Audit (COA) showing that in 2007, an aggregate amount of P30,000,000.00 covered by three SAROs, i.e., SARO No. ROCS-07-00580, SARO No. ROCS-07- 00861 and SARO No. ROCS-07-05450, were taken from Jaraula's PDAF and then transferred from TRC to CARED. The COA also conducted a special audit on the PDAF allocations and disbursements of Jaraula from 2007 to 2009, the results of which were contained in the COA Special Audits Office (SAO) Report No. 2012-03.9
Meantime, the Field Investigation Office (FIO) of the Ombudsman also filed a complaint against Jaraula and other public officers, including Relampagos, et al., for malversation of public funds and violation of Section 3(e) of R.A. No. 3019. 10 The FIO complaint alleged, among others, that Jaraula and Napoles conspired with each other in misappropriating the PDAF allocation and converting it to their personal use and benefit, and that Jaraula acted with manifest partiality and evident bad faith in endorsing CARED, thus, giving Napoles unwarranted benefits causing undue injury to the government. 11
The Ombudsman's Resolution
The NBI and the FIO complaints were jointly resolved by the Ombudsman in its Joint Resolution 12 dated September 26, 2014.
Based on the testimonies of Luy, Marina Sula (Sula) and Merlina Sufi.as (Suñas), all employees of the Janet Lim Napoles Corporation, COA Report No. 2012-03 and the FIO verification, the Ombudsman found probable cause against therein respondents, including Relampagos, et al., for three counts of violation of Section 3(e) of R.A. No. 3019, covering SARO No. ROCS-07-00580, SARO No. ROCS-07-00861 and SARO No. ROCS07-05450.
Insofar as respondents Relampagos, et al. were concerned, the Ombudsman held that they were the ones who processed the SAROs and the NCAs pertaining to Jaraula's PDAF projects. They also exhibited manifest partiality in favor of Napoles when they expedited the processing of the SAROs and NCAs.
The Ombudsman also found probable cause to indict therein respondents, including Relampagos, et al., for three counts of malversation of public funds for having conspired with Jaraula and Napoles to misappropriate public funds drawn from Jaraula's PDAF.
Respondents Relampagos, et al. filed a consolidated motion for reconsideration, arguing that the PDAF Process Flow adopted by the DBM for 2007 to 2009 shows that they had no means of expediting the release of the SAROs and NCAs of Jaraula. 13
Relampagos claimed that his participation was limited to the signing of the SAR Os only in the absence of the DBM Secretary and that out of the three SAROs, he signed only two: SARO No. ROCS-07-00580 and SARO No. ROCS-07-00861. He claimed that he had no participation in the preparation of the SAROs nor the NCAs because the evaluation and recommendation for the release of such were not done by his office. 14
Similarly, Nuñez, Paule and Bare claimed that they had no participation in the release of the PDAF from 2007 to 2009 and that Luy's follow-up of the status of the release of the SAR Os is not at all extraordinary as it was a regular practice in their office. Luy also did not accuse them of having participated in the PDAF scam nor having received any portion of the PDAF allocations. 15
The Ombudsman, however, denied Relampagos, et al.'s consolidated motion for reconsideration in its Joint Order 16 dated November 26, 2014.
The Information
Consequently, three Information for violation of Section 3( e) of R.A. No. 3019 were filed before the Sandiganbayan and were docketed as Criminal Case Nos. SB-15-CRM-0016, SB-15-CRM-0017 and SB-15- CRM-0018. As well, three Information for malversation of public funds were filed before the Sandiganbayan and were docketed as Criminal Case Nos. SB-15-CRM-0019, SB-15-CRM-0020 and SB-15-CRM-0021.
The subject matter of Criminal Case Nos. SB-15-CRM-OO 17 and SBCRM-15-0020 was the PDAF allocation covered by SARO No. ROCS-07- 05450. The accusatory portions of the Information covering SARO No. ROCS-07-05450 read:
[A.] In Criminal Case No. SB-15-CRM-0017 (For violation of Section 3(e) of R.A. [No.] 3019):
In January 2007, or sometime prior or subsequent thereto, in Quezon City, and within this Honorable Court's jurisdiction, accused public officers CONSTANTINO GALAGNARA JARAULA (Jaraula), the then Congressman of the lone district of Cagayan de Oro City; MARIO LOQUELLANO RELAMPAGOS (Relampagos), Undersecretary for Operations, ROSARIO SALAMIDA NUNEZ (Nufiez), LALAINE NARAG PAULE (Paule) and MARILOU DIALINO BARE (Bare), assigned to the Office of the Undersecretary for Operations, all of the DEPARTMENT OF BUDGET AND MANAGEMENT (DBM); ANTONIO YRIGON ORTIZ (Ortiz), Director General, DENNIS LACSON CUNANAN (Cunanan), Deputy Director General, FRANCISCO B. FIGURA (Figura), Group Manager, MA. ROSALINDA MASONGSONG LACSAMANA (Lacsamana), Group Manager, MARIVIC V. JOVER (Jover), Chief Accountant, and MAURINE E. DIMARANAN (Dimaranan), Internal Auditor V /Division Chief, all of the TECHNOLOGY RESOURCE CENTER (TRC); while in the performance of their administrative and/or official functions and conspiring with one another and with private individuals JANET LIM NAPOLES (Napoles) and MYLENE T. ENCARNACION (Encarnacion); acting with manifest partiality and/or evident bad faith; did then and there [willfully], unlawfully and criminally cause undue injury to the government and/or give unwarranted benefits and advantage to said private individuals in the amount of at least NINE MILLION AND SIX HUNDRED THOUSAND PESOS (₱9,600,000.00), through a scheme described as follows:
a. Jaraula unilaterally chose and indorsed COUNTRYWIDE AGRI AND RURAL ECONOMIC DEVELOPMENT FOUNDATION, INC. (CARED), a non-government organization operated and/or controlled by the aforementioned private individuals, as "project partner" in implementing livelihood projects to farmers in his legislative district, which were funded by Jaraula's Priority Development Assistance Fund (PDAF) allocation covered by Special Allotment Release Order (SARO) No. ROCS-07-05450, in disregard of the appropriation law and its implementing rules, and/or without the benefit of public bidding, as required under Republic Act No. 9184 and its implementing rules and regulations, and with CARED being unaccredited and unqualified to undertake projects;
b. DBM's Relampagos, Nunez, Paule and Bare, unduly accommodating herein private individuals, facilitated the processing of the aforementioned SARO and the corresponding Notice of Cash Allocation resulting in the release of the subject funds drawn from Jaraula's PDAF to TRC, the agency chosen by Jaraula through which to course his PDAF allocations; (Emphasis supplied)
c. Jaraula and TRC's Ortiz then entered into a Memorandum of Agreement (MOA) with CARED on the purported implementation of Jaraula's PDAF-funded projects, and which MOA was prepared and/or reviewed by Lacsamana;
d. Ortiz also facilitated, processed, and approved the disbursement of the subject PDAF release by signing Disbursement Voucher No. 12007040660 along with Cunanan and Jover, with Dimaranan verifying that the supporting documents were attached, as well as causing the issuance of Landbank Check No. 850453 in the amount of [₱]9,600,000.00 to CARED which was signed by Ortiz and Figura, without accused TRC officers and employees having carefully examined and verified the accreditation and qualifications of CARED as well as the transaction's supporting documents;
e. Encarnacion, acting for and in behalf of Napoles and CARED, received the above-described check from TRC and remitted the proceeds to Napoles;
f. The above acts by the accused public officials[,] thus[,] allowed CARED to divert said PDAF-drawn public funds to Napoles' control and benefit instead of implementing the PDAF-funded projects which turned out to be non-existent, while Napoles and Encarnacion caused/participated in the preparation and signing of the acceptance and delivery reports, disbursement reports, project proposals and other liquidation documents to conceal the fictitious nature of the transaction; and
g. Jaraula, personally and/or thru his representatives, as well as the other accused public officers and employees, received commissions and/or "kickbacks" from Napoles, in consideration of their participation and collaboration as described above.
CONTRARY TO LAW. 17
[B.] In Criminal Case No. SB-15-CRM-0020 (For violation of Article 217, RPC):
In January 2007, or sometime prior or subsequent thereto, in Makati City, and within this Honorable Court's jurisdiction, accused public officers CONSTANTINO GALAGNARA JARAULA (Jaraula), the then Congressman of the lone district of Cagayan de Oro City; MARIO LOQUELLANO RELAMPAGOS (Relampagos), Undersecretary for Operations, ROSARIO SALAMIDA NUNEZ (Nuñez), LALAINE NARAG PAULE (Paule) and MARILOU DIALINO BARE (Bare), assigned to the Office of the Undersecretary for Operations, all of the DEPARTMENT OF BUDGET AND MANAGEMENT (DBM); ANTONIO YRIGON ORTIZ (Ortiz), Director General, DENNIS LACSON CUNANAN (Cunanan), Deputy Director General, FRANCISCO B. FIGURA (Figura), Group Manager, MA. ROSALINDA MASONGSONG LACSAMANA (Lacsamana), Group Manager, MARIVIC V. JOVER (Jover), Chief Accountatnt, and MAURINE E. DIMARANAN (Dimaranan), Internal Auditor V /Division Chief, all of the TECHNOLOGY RESOURCE CENTER (TRC); while in the performance of their administrative and/or official functions and conspiring with one another and with private individuals JANET LIM NAPOLES (Napoles) and MYLENE T. ENCARNACION (Encarnacion); did then and there [willfully], unlawfully and criminally allow private individuals to take public funds amounting to at least NINE MILLION AND SIX HUNDRED THOUSAND PESOS ([₱]9,600,000.00), through a scheme described as follows: a. Jaraula, a public officer accountable for and exercising control over the Priority Development Assistance Fund (PDAF) allocated to him by the general appropriation law for the year 2007, unilaterally chose and indorsed COUNTRYWIDE AGRI AND RURAL ECONOMIC DEVELOPMENT FOUNDATION, INC. (CARED), a nongovernment organization operated and/or controlled by the aforementioned private individuals, as "project partner" in implementing livelihood projects to farmers in his legislative district, which were funded by Jaraula's Priority Development Assistance Fund (PDAF) allocation covered by Special Allotment Release Order (SARO) No. ROCS-07-05450, in disregard of the appropriation law and its implementing rules, and/or without the benefit of public bidding, as required under Republic Act No. 9184 and its implementing rules and regulations, and with CARED being unaccredited and unqualified to undertake projects;
b. DBM's Relampagos, Nunez, Paule and Bare, unduly accommodating herein private individuals, facilitated the processing of the aforementioned SARO and the corresponding Notice of Cash Allocation resulting in the release of the subject funds drawn from Jaraula's PDAF to TRC, the agency chosen by Jaraula through which to course his PDAF allocations; (Emphasis supplied)
c. Jaraula and TRC's Ortiz then entered into a Memorandum of Agreement (MOA) with CARED on the purported implementation of Jaraula's PDAF-funded projects, and which MOA was prepared and/or reviewed by Lacsamana;
d. Ortiz also facilitated, processed, and approved the disbursement of the subject PDAF release by signing Disbursement Voucher No. 12007040660 along with Cunanan and Jover, with Dimaranan verifying that the supporting documents were attached, as well as causing the issuance of Landbank Check No. 850453 in the amount of [₱]9,600,000.00 to CARED which was signed by Ortiz and Figura, without accused TRC officers and employees having carefully examined and verified the accreditation and qualifications of CARED as well as the transaction's supporting documents; e. Encarnacion, acting for and in behalf of Napoles and CARED, received the above-described check from TRC and remitted the proceeds to Napoles;
f. By their above acts, Jaraula and the above-named TRC officials allowed Napoles and her cohorts, through CARED, to take possession and[,] thus[,] misappropriate PDAF-drawn public funds, instead of implementing the PDAF-funded projects, which turned out to be nonexistent, while Napoles and Encarnacion caused/participated in the preparation and signing of the acceptance and delivery reports, disbursement reports, project proposals and other liquidation documents to conceal the fictitious nature of the transaction, to the damage and prejudice of the Republic of the Philippines.
CONTRARY TO LAW. 18
The Sandiganbayan's Resolutions
Except for these two criminal cases, i.e., Criminal Case Nos. SB-15- CRM-0017 and SB-15-CRM-0020, the Sandiganbayan found probable cause for the issuance of warrants of arrest against all the accused.19
As regards Criminal Case Nos. SB-15-CRM-0017 and SB-15-CRM0020, the Sandiganbayan deferred the determination of probable cause against Relampagos, Nufiez, Paule and Bare, noting that while Relampagos readily admitted having signed two SAROs (subject of Criminal Case Nos. SB-15-CRM-0016 SB-15-CRM-0018 SB-15-CRM-0019 and SB-15- , ' ' CRM-0021), he denied having signed SARO No. ROCS-07-05450 (subject of Criminal Case Nos. SB-15-CRM-OO 17 and SB-15-CRM-0020). Thus, the Sandiganbayan ordered the prosecution to produce a copy of the said SARO before it rules on the existence of probable cause against Relampagos, et al.20
Meanwhile, Relampagos, et al. jointly filed an omnibus motion for judicial re-determination of probable cause and to defer arraignment. 21
Partially granting the said motion, the Sandiganbayan in its presently assailed Resolution22 dated May 13, 2015 dismissed Criminal Case Nos. SB15-CRM-0017 and SB-15-CRM-0020 against respondents Relampagos, et al. for lack of probable cause.
In so dismissing, the Sandiganbayan noted:
The Court, in its February 18, 2015 Resolution, directed the Office of the Ombudsman to submit a copy of SARO No. ROCS-07-05450, subject of Criminal Cases No. SB-15-CRM-0017 and No. SB-15-CRM0020, involving accused Relampagos, Nunez, Paule and Bare. Pending submission of a copy of the said SARO, the Court held in abeyance the determination of probable cause in the said cases. By way of compliance, dated March 12, 2015, the Office of the Special Prosecutor submitted a certified true copy of SARO No. ROCS-07-05450. After a careful examination of the said SARO, the Court finds that it was signed by DBM Secretary Rolando G. Andaya, Jr., and that apparently, accused Relampagos, Nuñez, Paule and Bare had no participation therein. Considering that the basis for the indictment of the aforenamed accused in the two criminal cases was their participation in the preparation and issuance of the said SARO, the Court, therefore, rules that there is no sufficient ground to find the existence of probable cause for the issuance of warrants of arrest against accused Relampagos, Nunez, Paule and Bare in these cases. Thus, Criminal Case No. SB-15-CRM-0017 and No. SB-15-CRM-0020 against accused Relampagos, Nunez, Paule and Bare should be dismissed.23 (Emphasis supplied)
The Sandiganbayan, thus, disposed:
in light of all the foregoing, the Court resolves: 1. To PARTIALLY GRANT the Urgent Consolidated Omnibus Motion, dated March 2, 2015, of accused Relampagos, Nunez, Paule and Bare, by DISMISSING Criminal Cases No. SB-15-CRM-0017 and No. SB-15-CRM-0020 against accused Relampagos, Nuñez, Paule and Bare, for lack of probable cause; (Emphasis supplied)WHEREFORE,
2. To DENY accused Jaraula's Ex-Parte Motion to Expunge Plaintiff's Comment/Opposition (to accused Jaraula 's Urgent Consolidated Motion to Quash Informations with Motion to Defer Arraignment), dated April 6, 2015; and
3. To DENY accused Jaraula's Urgent Consolidated Motion to Quash Informations with Motion to Defer Arraignment, dated March 6, 2015.
Accordingly, the arraignment of the accused scheduled on June 1, 2015 at 8:30 in the morning will proceed as scheduled.
SO ORDERED. 24