REPUBLIC OF THE PHILIPPINES SUPREME COURT MANILA XXX, Petitioner,

- versus XXX Respondents. x-------------------------------------------------x

S.C. G.R. No. __________________ For Certiorari under Rule 65 (case number in OCP)

PETITION FOR CERTIORARI

Petitioner XXX ( Petitioner!)" b# counsel, res$ect%ull# states&

I.

NATURE OF THE PETITION

'.' ()is is a Petition %or Certiorari under Rule 65 o% t)e Rules o% Court see*in+ to annul and set aside t)e %ollo,in+ Resolutions rendered in connection ,it) (C-S. N/01.R 2N OCP)" entitled" XXX vs. XXX., %or )a3in+ been issued ,it)out 4urisdiction or ,it) +ra3e abuse o% discretion amountin+ to lac* or excess o% 4urisdiction& a. Resolution dated '' 5anuar# 67'' ( First -ssailed Resolution!)' rendered b# 88888" +i3in+ due course to Pri3ate Res$ondent 888 ( Pri3ate Res$ondent!) -%%ida3it Com$laint dated 66 Februar# 6779 ( -%%ida3it Com$laint!)"6 and recommendin+ t)e %ilin+ o% 2n%ormations a+ainst Petitioner" amon+ ot)ers" %or t)e %ollo,in+ o%%enses& (i) :iolation o% Section ;(e) o% Re$ublic -ct No. ;7'<" ot)er,ise *no,n as t)e -ntiGra%t and Corru$t Practices -ct ( R- ;7'<!)= and (ii) 0al3ersation o% Public Funds under -rticle 6'9 o% t)e Re3ised Penal Code ( RPC!)= and Resolution dated '9 Februar# 67'6 ( Second -ssailed Resolution!); issued b# Public Res$ondent >on. 8xxxx Car$io-0orales ( Public Res$ondent!)" a$$ro3in+ t)e recommendation o% -ssistant S$ecial Prosecutor 222? -ctin+ @irector" Prosecution 1ureau 8" Omar A.

b.

'

- certi%ied true co$# o% t)e Resolution dated '' 5anuar# 67'' ( First -ssailed Resolution!) is attac)ed )ereto as Annex A and made an inte+ral $art )ereo%. - co$# o% Res$ondent 888 ( Res$ondent 888!) -%%ida3it Com$laint dated 66 Februar# 6779 ( -%%ida3it Com$laint!) is attac)ed )ereto as Annex B and made an inte+ral $art )ereo%. - certi%ied true co$# o% t)e Resolution dated '9 Februar# 67'6 ( Second -ssailed Resolution!) is attac)ed )ereto as Annex C and made an inte+ral $art )ereo%.

Sa+adal ( Prosecutor Sa+adal!)" to& (a) disa$$ro3e -ssistant S$ecial Prosecutor 22 0ar# -nn (. 8xxxxBs ( Prosecutor 8xxxx!) recommendation to +rant PetitionerBs 0otion %or Reconsideration (to 8xxxx Resolution dated 5anuar# ''" 67'') dated C 0a# 67'' ( 0otion %or Reconsideration!)"C as contained in )er 0emorandum dated < @ecember 67''"5 and t)us set aside t)e First -ssailed Resolution %or lac* o% $robable cause to )old Petitioner" amon+ ot)ers" liable %or 3iolation o% Section ;(e) o% R- ;7'< and 0al3ersation o% Public Funds= and conseDuentl# (b) den# PetitionerBs 0otion %or Reconsideration. '.6 ()e First -ssailed Resolution and t)e Second -ssailed Resolution are 4ointl# re%erred to )erein as -ssailed Resolutions.! '.; 2n issuin+ t)e -ssailed Resolutions" Public Res$ondent +ra3el# abused its discretion in (insert act done in +ra3e abuse o% discretion)" ,)ic) disre+arded t)e o3er,)elmin+ e3idence on record t)at t)ere is no $robable cause to c)ar+e Petitioner ,it) :iolation o% Section ;(e) o% R- No. ;7'< and 0al3ersation o% Public Funds. On t)e contrar#" t)e e3idence on record" su$$orted b# settled 4uris$rudence and a$$licable la,s" indubitabl# establis) t)at Petitioner clearl# and absolutel# committed no ille+al or unla,%ul act(s). '.C Petitioner does not )a3e an# $lain" s$eed# and adeDuate remed# in t)e ordinar# course o% la," exce$t %or t)is Petition.

II. STATEMENT OF MATERIAL DATES AND TIMELINESS OF PETITION

22.' On 6 0a# 67''" Petitioner came to *no, o% t)e existence o% t)e First -ssailed Resolution"6 recommendin+ t)e %ilin+ o% 2n%ormations a+ainst )er %or 3iolation o% Section ;(e) o% R- ;7'< and 0al3ersation o% Public Funds under -rticle 6'9 o% t)e RPC. 22.6 Petitioner t)en timel# %iled a 0otion %or Reconsideration 9 o% t)e First -ssailed Resolution ,it) t)e O%%ice o% t)e 8xxxx on 5 0a# 67''" in accordance ,it) -dministrati3e Order No. 9" ,)ic) states t)e Rules o% Procedure o% t)e O%%ice o% t)e 8xxxx.E 22.; On ;7 0arc) 67'6" Petitioner recei3ed t)e Second -ssailed Resolution" < den#in+ PetitionerBs 0otion %or Reconsideration. /nder Section C" Rule 65 o% t)e Rules o% Court" and $ursuant to t)e rulin+ o% t)is >onorable Court in Fabian vs. Desierto"'7 Petitioner )as sixt# (67) da#s %rom recei$t o% t)e Second -ssailed Resolution" or until ! M"# $% " ,it)in ,)ic) to %ile a Petition %or Certiorari under Rule 65 o% t)e Rules o% Court. ()us" t)is Petition is timel# %iled.
C

6 9 E < '7

- co$# o% t)e 0otion %or Reconsideration (to 8xxxx Resolution dated 5anuar# ''" 67'') dated C 0a# 67'' ( 0otion %or Reconsideration!) is attac)ed )ereto as Annex & and made an inte+ral $art )ereo%. - co$# o% t)e 0emorandum dated < @ecember 67'' is attac)ed )ereto as Annex & and made an inte+ral $art )ereo%. First -ssailed Resolution" -nnex _! )ereo%. 0otion %or Reconsideration" -nnex _! )ereo%. Section 9 o% -dministrati3e Order No. 9" as amended b# -dministrati3e Order No. '5. Second -ssailed Resolution" -nnex _! )ereo%. G.R. No. '6<9C6" '6 Se$tember '<<E" _ SCR- _" _.

III.

PARTIES

222.' Petitioner xxxx is a Fili$ino" o% le+al a+e" ,it) address at xxxx. Petitioner ma# be ser3ed ,it) $leadin+s" motions" notices" Resolutions" Orders and ot)er $a$ers o% t)is >onorable Court t)rou+) )er counsel" xxxxxx. 222.6 Public Res$ondent" t)e xxx" in )er ca$acit# as t)e xxxx" ,)o issued t)e -ssailed Resolutions" ma# be ser3ed ,it) $leadin+s" motions" notices" Resolutions" Orders and ot)er $a$ers o% t)is >onorable Court at t)e xxxx. 222.; Pri3ate Res$ondent" xxxx" is a Fili$ino" o% le+al a+e" and is t)e $rime mo3er %or all t)e abo3e trum$ed-u$ c)ar+es a+ainst Petitioner. >e ma# be ser3ed ,it) $leadin+s" motions" notices" Resolutions" Orders and ot)er $a$ers o% t)is >onorable Court at )is residence ,it) address at xxxx.

I'.
(2nsert Facts)

STATEMENT OF THE FACTS STATEMENT OF THE CASE

'.

(2nstert statement o% t)e case" or t)e $ortion o% t)e %acts ,)ic) $ertains to t)e adulter#" i.e." %rom %ilin+ o% t)e com$laint?$er%ormance o% acts ,)ic) ser3e as basis o% t)e com$laint. ()us" #ou are +i3en %reedom to add %acts in $art 2: not included in t)e resolution. 1e creati3e. )

'I.

(ROUNDS IN SUPPORT OF THE PETITION

I

PUBLIC RESPONDENT ACTED )ITH (RA'E ABUSE OF DISCRETION AMOUNTIN( TO LAC* OR EXCESS OF +URISDICTION IN ISSUIN( THE ASSAILED RESOLUTIONS FINDIN( PROBABLE CAUSE A(AINST PETITIONER FOR 'IOLATION OF SECTION , -E. OF REPUBLIC ACT NO. ,$%! -RA ,$%!.. THE ELEMENT OF UNDUE IN+UR/ TO THE (O'ERNMENT OR UN)ARRANTED BENEFITS TO AN/ PART/ IS CLEARL/ ABSENT. A. PUBLIC BIDDIN( )AS NOT RE0UIRED UNDER THE CIRCUMSTANCES BECAUSE NO (O'ERNMENT PROCUREMENT IS IN'OL'ED, AND ABSENCE OF THE SAME DID NOT RESULT IN UNDUE IN+UR/ TO THE PRO'INCIAL (O'ERNMENT. NEITHER DID THE LAC* OF COMPETITI'E BIDDIN( CREATE UN)ARRANTED BENEFITS IN FA'OR OF XXXXX SINCE THE N(O MEREL/ ACTED AS CONDUIT OF THE FUNDS. THE MOA CONTAINED SUFFICIENT SAFE(UARDS TO PRE'ENT THE ACCRUAL OF UN)ARRANTED BENEFITS TO XXXXX AND TO PROTECT THE ;

B.

PRO'INCIAL (O'ERNMENT FROM BEIN( IN+URED OR DISAD'ANTA(ED. C. AT ALL TIMES, PETITIONER ACTED )ITHIN THE BOUNDS OF HER AUTHORIT/ AND IN (OOD FAITH. II PUBLIC RESPONDENT ACTED )ITH (RA'E ABUSE OF DISCRETION AMOUNTIN( TO LAC* OR EXCESS OF +URISDICTION IN ISSUIN( THE ASSAILED RESOLUTIONS FINDIN( PROBABLE CAUSE FOR MAL'ERSATION OF PUBLIC FUNDS. NOT ALL THE ELEMENTS OF SAID CRIME ARE PRESENT.

'II. DISCUSSION
I PUBLIC RESPONDENT ACTED )ITH (RA'E ABUSE OF DISCRETION AMOUNTIN( TO LAC* OR EXCESS OF +URISDICTION IN ISSUIN( THE ASSAILED RESOLUTIONS FINDIN( PROBABLE CAUSE A(AINST PETITIONER FOR 'IOLATION OF SECTION , -E. OF REPUBLIC ACT NO. ,$%! -RA ,$%!.. THE ELEMENT OF UNDUE IN+UR/ TO THE (O'ERNMENT OR UN)ARRANTED BENEFITS TO AN/ PART/ IS CLEARL/ ABSENT.

:22.' ()e elements o% t)e crime $unis)able under Section ;(e) o% R- ;7'< are as %ollo,s& (a) t)e accused must be a $ublic o%%icer disc)ar+in+ administrati3e" 4udicial or o%%icial %unctions= (b) )e must )a3e acted ,it) mani%est $artialit#" e3ident bad %ait) or inexcusable ne+li+ence= and (c) )is action caused undue in4ur# to an# $art#" includin+ t)e +o3ernment" or +a3e an# $ri3ate $art# an un,arranted bene%it" ad3anta+e or $re%erence in t)e disc)ar+e o% )is %unctions. '' >ere" t)ere is no direct e3idence t)at Petitioner caused undue in4ur# to t)e Pro3incial Go3ernment o% 8xxxx or +a3e un,arranted bene%it" ad3anta+e" or $re%erence to 88888 or an# ot)er $art#" t)rou+) mani%est $artialit#" e3ident bad %ait) or inexcusable ne+li+ence. :22.6 2n a lon+ line o% cases" probable cause )as been de%ined in more or less a similar %as)ion" t)us& Probable cause does not mean actual and $ositi3e cause" nor does it im$ort absolute certaint#. ()e determination o% t)e existence o% $robable cause is not concerned ,it) t)e Duestion o% ,)et)er t)e o%%ense c)ar+ed )as been or is bein+ committed in %act" or ,)et)er t)e accused is +uilt# or innocent" but onl# ,)et)er t)e a%%iant )as reasonable +rounds %or )is belie%. T1e re2u3re4en5 3s 6ess 51"n 7er5"3n5# 8r 9r88:, ;u5 48re 51"n sus93738n 8r 98ss3;3635#.!'6
''

Catindi+ 3. Peo$le" G.R. No. 'E;'C'" 'E Se$tember 677<" __ SCR- __. See also 1a#ba# Fater @istrict 3. Commission on -udit" G.R. Nos. 'C96CE-C<" 6; 5anuar# 6776" C65 P)il. ;66.

:22.; Clearl#" t)e existence o% $robable cause cannot be made to de$end on %lims# or unsubstantiated claims" since t)e $ur$ose o% determinin+ $robable cause t)rou+) a $reliminar# in3esti+ation is not onl# to $rosecute o%%enders but also to secure t)e innocent a+ainst )ast#" malicious and o$$ressi3e $rosecution.'; 1ecause t)e determination o% $robable cause is $art and $arcel o% t)e constitutional ri+)ts to due $rocess and to be $resumed innocent" t)e institution o% a criminal com$laint must be done b# t)e $ublic $rosecutor a%ter )e )as been su%%icientl# a$$rised b# t)e com$lainant o% )is e3idence t)at su$$orts )is accusations.'C -s t)is >onorable Court a$tl# states& 2ndeed" $robable cause need not be based on clear and con3incin+ e3idence o% +uilt" neit)er on e3idence establis)in+ +uilt be#ond reasonable doubt and de%initel#" not on e3idence establis)in+ absolute certaint# o% +uilt" but it certainl# <e4"n<s 48re 51"n ;"re sus93738n "n< 7"n never ;e 6e:5 58 9resu998s3538n, 78n=e75ure, 8r even 78nv3n73n> 68>37.!'5

:22.C 2n t)e $resent case" in 3ie, o% t)e deart) o% e3idence on record" t)e Public Res$ondent could not" and s)ould not" )a3e %ound $robable cause to indict Petitioner. :22.5 2t bears notin+ at t)e outset t)at" %rom t)e ince$tion o% t)e in3esti+ations a+ainst Petitioner" t)ere ,as considerable doubt as to certain material %acts and *e# elements o% t)e o%%enses c)ar+ed. 2n a 0emorandum dated '< -$ril 67'' '6" Prosecutor 8xxxx recommended t)e conduct o% %urt)er in3esti+ation on t)ese issues" to ,it& a. F)et)er t)e %ull amount o% P65 million ,as utiliGed b# t)e 88888= b. F)et)er t)e 65 million ,as e3entuall# returned to t)e Pro3incial Go3ernment= c. F)et)er t)e Pro3incial +o3ernment $ro3ided %unds %or t)e o$eration reDuirement o% t)e $ro+ram= d. F)et)er a CO- Re$ort exists relati3e to t)e im$lementation o% t)e Rice Pro+ram= and e. F)et)er t)e 88888 is re+istered ,it) t)e S.C. :22.6 2n s$ite o% t)e uncertaint# as re+ards t)e %ore+oin+ items" t)e OSP ,as ne3ert)eless directed to %ile t)e 2n%ormations ,it) t)e Court. Clearl#" t)e Public Res$ondent committed +ra3e abuse o% discretion amountin+ to lac* or excess o% 4urisdiction ,)en s)e a$$ro3ed and ado$ted suc) course o% action A. PUBLIC BIDDIN( )AS NOT RE0UIRED UNDER THE CIRCUMSTANCES BECAUSE NO (O'ERNMENT PROCUREMENT IS IN'OL'ED, AND ABSENCE OF THE SAME DID NOT RESULT IN UNDUE IN+UR/ TO THE PRO'INCIAL
H)o" et al. 3. >on. AanGanas" et al." G.R. No. '57E99" C 0a# 6776" CE< SCR- CCC" em$)asis and underscorin+ su$$lied. See also Pila$il 3. Sandi+anba#an" G.R. No. '7'<9E" 9 -$ril '<<;" 66' SCR- ;C<= @omalanta" et al." 3. Comelec" et al." G.R. No. '655E6" 6< 5une 6777" ;;C SCR- 555. Collantes 3. 0arcelo" G.R. Nos. '69776-79" -u+ust 'C" 6779" 5;7 SCR- 'C6= cited in Soriano 3. 0arcelo" et al." G.R. No. '6;7'9" 'E 5une 677E" 555 SCR- E5. Hilosba#an" 2nc." et al. 3. Comelec" et al." G.R. No. '6E75C" '6 October '<<9" ;C5 SCR''C'= citations omitted. Id, at ''9C= em$)asis and underscorin+ su$$lied. Cited in 0emorandum dated < @ecember 67''" -nnex __! )ereo%" $$. ;-C.

'6

';

'C

'5 '6

(O'ERNMENT. NEITHER DID THE LAC* OF COMPETITI'E BIDDIN( CREATE UN)ARRANTED BENEFITS IN FA'OR OF XXXXX SINCE THE N(O MEREL/ ACTED AS CONDUIT OF THE FUNDS.

:22.9 F)at is $unis)able under Section ; (e) o% R- ;7'< is t)e act o% causin+ an# undue in4ur# to an# $art#" or t)e +i3in+ to an# $ri3ate $art# un,arranted bene%its" ad3anta+e or $re%erence in t)e disc)ar+e o% t)e $ublic o%%icerIs %unctions.'9 :22.E 2n t)is case" Public Res$ondentBs erroneous %indin+ o% $robable cause a+ainst Petitioner %or 3iolation o% Section ;(e) o% R- ;7'< )in+es on t)e absence o% $ublic biddin+ (or an# ot)er acce$table mode o% $rocurement under t)e la,) $rior to t)e a,ard o% t)e contract" t)e 0O-" in %a3or o% 88888" contrar# to t)e reDuirements o% R<'EC.'E ()e t)eor# o% t)e -ssailed Resolutions is t)at suc) absence o% biddin+ Jde$ri3edK ot)er $ros$ecti3e consultants eDual o$$ortunit# o% transactin+ o%%icial business ,it) t)e +o3ernment!" and t)e same is alle+edl# tantamount to +i3in+ un,arranted bene%its" ad3anta+e or $re%erence to a $ri3ate entit#.'< :22.< 5uris$rudence de%ines and describes t)e second mode" i.e., +i3in+ un,arranted bene%its" ad3anta+e or $re%erence to a $ri3ate $erson" o% committin+ t)e crime de%ined in Section ;(e) o% R- ;7'< in t)is ,ise& ()e ,ord Lun,arrantedB means lac*in+ adeDuate or o%%icial su$$ort= un4usti%ied= unaut)oriGed or ,it)out 4usti%ication or adeDuate reason. L-d3anta+eB means a more %a3orable or im$ro3ed $osition or condition= bene%it" $ro%it or +ain o% an# *ind= bene%it %rom some course o% action. LPre%erenceB si+ni%ies $riorit# or )i+)er e3aluation or desirabilit#= c)oice or estimation abo3e anot)er. 2n order to be %ound +uilt# under t)e second mode" it su%%ices t)at t)e accused )as +i3en un4usti%ied %a3or or bene%it to anot)er" in t)e exercise o% )is o%%icial" administrati3e or 4udicial %unctions.!67 :22.'7 PetitionerBs act o% enterin+ into t)e 0O- did not result in an# $ermanent trans%er o% %unds %rom t)e $ublic co%%ers to t)e $oc*ets o% 88888" since t)e latter did not recei3e an# amount %rom t)e $ro3incial +o3ernment as com$ensation %or t)e ser3ices it rendered. 2n su$$ort o% t)is statement" a clari%ication as re+ards t)e nature o% t)e 0O- and t)e ri+)ts and obli+ations o% t)e $arties t)ereto is in order. First, t)e NGO or %oundation ,it) ,)om t)e $ro3incial +o3ernment is contractin+ is onl# su$$osed to maintain t)e %unds %or t)e $ro3incial rice $ro+ram and %acilitate t)e trans%er o% t)ese to Duali%ied %armer bene%iciaries in 8xxxx. Second, in $er%ormin+ suc) underta*in+" t)e NGO or %oundation does not ex$ect to +et $aid because suc) underta*in+ is on a 3oluntar# basis. ()is can be +leaned %rom t)e .i+)t) F)ereas clause o% t)e 0O- ,)ic) $ro3ides&

'9 'E

'< 67

:er+ara 3. 8xxxx" et al." G.R. No. '9C569" '6 0arc) 677<" 5E7 SCR- 6<;. First -ssailed Resolution" -nnex __! )ereo%" $$. E-''. See also Second -ssailed Resolution" $ar. 5. First -ssailed Resolution" -nnex __! )ereo%" $. '' Sison 3. Peo$le" G.R. Nos. '97;;<" '97;<E-C7;" < 0arc) 67'7" __ SCR- __.

F)ereas" t)e FO/N@-(2ON J88888K" a non-+o3ernmental or+aniGation %ocusin+ on $ro3idin+ basic social ser3ices to t)e $eo$le o% 8xxxx )as si+ni%ied its intention to mana+e" administer" and im$lement t)e Pro3incial Rice Pro+ram=! :22.'' 2n t)is re+ard" t)e First -ssailed Resolution itsel% ac*no,led+es t)at t)e 0O- contained no sti$ulations as to t)e amount o% t)e contract 6' --- stren+t)enin+ PetitionerBs $osition t)at t)e 0O- does not contem$late a con3e#ance o% bene%it" $ecuniar# or ot)er,ise" to 88888. :22.'6 Clearl#" t)e Public Res$ondent +ra3el# abused )er discretion in disre+ardin+ t)e abo3e %acts and %indin+ t)at un,arranted bene%its accrued to 88888. ()e trut) o% t)e matter is t)at 88888 did not e3en recei3e an# bene%it" muc) less an un,arranted one. -ccordin+l#" t)ere is no basis on record %or t)e Public Res$ondent to conclude t)at Petitioner accorded un,arranted bene%its" ad3anta+e or $re%erence to 88888. :22.'; Petitioner cannot li*e,ise be c)ar+ed ,it) )a3in+ acted ,it) mani%est $artialit# sim$l# because no com$etiti3e $ublic biddin+ ,as conducted be%ore s)e entered into t)e 0O- ,it) 88888. ()is >onorable Court ex$lained t)at actin+ ,it) mani%est $artialit# is one o% t)e t)ree modes o% committin+ t)e o%%ense de%ined b# Section ;(e)" and de%ined t)e term mani%est $artialit#!" t)us& BPartialit#B is s#non#mous ,it) LbiasB ,)ic) Lexcites a dis$osition to see and re$ort matters as t)e# are ,is)ed %or rat)er t)an as t)e# are.B ... Proo% o% t)e existence o% an# o% t)ese modes in connection ,it) t)e $ro)ibited acts under Section ;(e) s)ould su%%ice to ,arrant con3iction.!66 ()ere is mani%est $artialit# ,)en t)ere is a clear" notorious" or $lain inclination or $redilection to %a3or one side or $erson rat)er t)an anot)er.!6; :22.'C >ere" contrar# to ,ell-settled rules" t)e Public Res$ondent did not s$eci%# and alle+e t)e %acts %rom ,)ic) it based t)e conclusion t)at Petitioner acted ,it) mani%est $artialit# in %a3or o% 88888. 2n Dela Chica v. Sandiganbayan2 , it ,as ex$lained t)at t)e mode b# ,)ic) t)e o%%ense ,as committed" e.g., !,it) mani%est $artialit#!" must be alle+ed ,it) $articularit#" t)us& 2t is not enou+) to alle+e t)at t)e acts ,ere ,ill%ull#" unla,%ull# or criminall# caused ,it)out statin+ t)at t)e same ,as done in a manner b# ,)ic) t)e accused could be )eld liable %or t)e s$eci%ic o%%ense c)ar+ed. ()is Court )as ruled t)at in order t)at one ma# be )eld criminall# liable under Section ;(e) o% R.-. ;7'<" t)e act o% t)e accused ,)ic) caused undue in4ur# must )a3e been done ,it) e3ident bad %ait) or ,it) +ross inexcusable ne+li+ence. ()is dra,s more si+ni%icance considerin+ t)at >88< :"351 "n< re>u6"r35# "re "6?"#s 9resu4e< 3n 51e 9er:8r4"n7e 8: 8::373"6 <u53es ;# 9u;637 8::37ers. T1ere:8re, 4"n3:es5 9"r53"635#,
6' 66

6;

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First -ssailed Resolution" -nnex __! )ereo%" $. '7. Fonacier" et al. 3. Sandi+anba#an" G.R. Nos. A-576<'" 5 @ecember '<<C" 6;E SCR- 655" __= citations omitted. 0.-. 5imeneG .nter$rises" 2nc. 3. ()e >onorable 8xxxx" et al." G.R. No. '55;79" 6 5une 67''" __ SCR- __= citin+ -lbert 3. Sandi+anba#an" G.R. No. '6C7'5" Februar# 66" 677<" 5E7 SCR- 69<" 6<7. G.R. No. 'CCE6;" E @ecember 677;" __ SCR- __= __.

ev3<en5 ;"< :"351 8r >r8ss 3nex7us";6e ne>63>en7e 4us5 ;e "66e>e< ?351 9"r537u6"r35# 3n 51e 3n:8r4"538n su::373en56# 58 3n:8r4 51e "77use< 8: 51e 71"r>e ">"3ns5 134 "n< 58 en";6e 51e 78ur5 9r89er6# 58 ren<er " <e73s38n.!65

:22.'5 Neit)er t)e 2n%ormations nor t)e -ssailed Resolutions con%orm ,it) t)is standard. ()ese onl# made 3a+ue re%erences to PetitionerBs su$$osed mani%est $artialit#" e3ident bad %ait) and +ross inexcusable ne+li+ence arisin+ %rom t)e absence o% a $ublic biddin+ $rior to t)e a,ard o% t)e 0O-. >o,e3er" t)at t)e 0O- ,as not sub4ected to com$etiti3e $ublic biddin+ is not %atal to PetitionerBs cause. 2nasmuc) as no +o3ernment $rocurement is in3ol3ed in t)is case" com$etiti3e $ublic biddin+ is not reDuired. ()e relations)i$ %ormed bet,een t)e Pro3incial Go3ernment and 88888 $ursuant to t)e 0O- does not e3en ex$ose t)e Pro3incial Go3ernment to an# %inancial liabilit#. 2% at all" t)e %inancial ris* to t)e +o3ernment is ,it) res$ect to t)e $ossibilit# o% t)e %armer bene%iciaries de%aultin+ on t)e loans extended to t)em b# t)e $ro3ince t)rou+) 88888. :22.'6 -t an# rate" t)e mere absence o% $ublic biddin+" assumin+ arguendo t)at one is reDuired in t)e $resent case" s)ould not automaticall# translate to a %indin+ o% in4ur#" dama+e or disad3anta+e to t)e +o3ernment t)at ,ould ,arrant t)e %indin+ o% $robable cause to indict a $ublic o%%icial %or 3iolation o% Section ;(e) o% R- ;7'<. 2ndeed" t)is >onorable Court ruled in "ava v. Palattao2# t)at& L"7@ 8: 9u;637 ;3<<3n> "68ne <8es n85 resu65 3n " 4"n3:es5 "n< >r8ss <3s"<v"n5">e. 2ndeed" t)e absence o% a $ublic biddin+ ma# mean t)at t)e +o3ernment ,as not able to secure t)e lo,est bar+ain in its %a3or and ma# o$en t)e door to +ra%t and corru$tion. Ne3ert)eless" t)e la, reDuires t)at t)e disad3anta+e must be mani%est and +ross. Pen"6 6"?s "re s5r3756# 78ns5rue< ">"3ns5 51e >8vern4en5. 2% t)e accused is to be sent to 4ail" it must be because t)ere is solid e3idence to $in t)at $erson do,n" n85 ;e7"use 8: 51e 843ss38n 8: " 9r87e<ur"6 4"55er "68ne.!69

:22.'9 On t)is note" it is im$ortant to remember t)e rationale be)ind t)e le+al reDuirement o% conductin+ $ublic biddin+s. 2n Po$er Sector %ssets and &iabilities 'anage(ent Corporation )PS%&'* v. Po++olanic Philippines, Inc., t)is >onorable Court ex$lained& -side %rom $rotectin+ $ublic interest b# +i3in+ t)e $ublic t)e best $ossible ad3anta+es t)rou+) o$en com$etition" LJaKnot)er sel%-e3ident $ur$ose o% $ublic biddin+ is to a3oid or $reclude sus$icion o% %a3oritism and anomalies in t)e execution o% $ublic contracts.B!6E
65 66

69 6E

.m$)asis and underscorin+ su$$lied. G.R. No. '676''" 6E -u+ust 6776" __ SCR- __. See also 0arDueG 3. Sandi+anba#an" G.R. Nos. 'E6767-6C and Caunan 3. Peo$le" G.R. Nos. 'E'<<< M 'E677'-7C" 6 Se$tember 677<" __ SCR- __. .m$)ases and underscorin+ su$$lied. Citin+ @an3ille 0aritime" 2nc. 3. Commission on -udit" G.R. No. E56E5" 6E 5ul# '<E<" '95 SCR- 97'" 9''= citin+ F.RN-N@.N" 1.C" (R.-(2S. ON GO:.RN0.N( CON(R-C(S /N@.R P>2A2PP2N. A-F" $$. 6; and 6C" and CO1-C>- -N@ A/C.N-R2O" A-F ON P/1A2C

:22.'E >ere" t)e abo3e rationale ,as not circum3ented" and t)e $ublic interest ,as u$)eld rat)er t)an dama+ed" because t)e Pro3incial Go3ernment ,as able to e%%icientl# im$lement its rice $ro+ram cu( credit %acilit# b# ta$$in+ t)e ex$ertise and ser3ices o% t)e $ri3ate sector at no cost. 2t bears notin+ t)at t)e $ro3ince actuall# )as limited resources" and assistance suc) as t)e one extended b# 88888 is crucial. Petitioner is co+niGant o% t)is6<" and s)e s)ould not be %aulted %or actin+ ,it) t)e ,el%are o% )er constituents" es$eciall# o% 8xxxxBs %armers" in mind. :22.'< ()e -ssailed Resolutions are not in accordance ,it) t)e la, on $ublic biddin+ as ,ell as t)e e3idence on record" ,)ic) clearl# s)o, t)at t)e 0O- need not be t)e sub4ect o% a $ublic biddin+" inasmuc) as it is neit)er a contract %or mana+ement or consultin+ ser3ices" nor one %or in%rastructure $ro4ects" t)e trut) bein+ t)at 88888 merel# 3olunteered to s)are its tec)nical" %inancial and mana+erial ex$ertise to $ro$erl# monitor t)e su$er3ised credit %acilit# o% t)e )#brid rice $ro+ram. :22.67 2n Pecho v. Sandiganbayan";7 t)e Su$reme Court clari%ied t)at causin+ undue in4ur# to an# $art#" includin+ t)e +o3ernment" could onl# mean actual in4ur# or dama+e ,)ic) must be establis)ed b# e3idence!.;' ()e mere commission o% a ,ron+ or a 3iolation o% a ri+)t does not automaticall# +i3e rise to a %indin+ t)at undue in4ur# resulted t)ere%rom" )ence" t)e alle+ation o% undue in4ur# must be s$eci%ied" Duanti%ied and $ro3en to t)e $oint o% moral certaint#!.;6 :22.6' 2n t)is re+ard" b# not dismissin+ t)e cases" and instead a%%irmin+ t)e %indin+s o% t)e O%%ice o% t)e S$ecial Prosecutor" t)e Public Res$ondent acted ,it)out basis in %act or la," and t)ereb# undul# )arassed Petitioner. 1# disa$$ro3in+ t)e 0emorandum dated @ecember <" 67''" ,)ic) recommended t)e dismissal o% t)e c)ar+es %or 0al3ersation and :iolation o% Section ;(e) o% R- ;7'< %or lac* o% $robable cause" t)e Public Res$ondent s)i%ted t)e burden o% $ro3in+ )er innocence on Petitioner. ()is is e3ident in t)e Second -ssailed Resolution" t)us& 6. ()e amount released to 88888 )as not been %ull# accounted %or accordin+ to CO-. Furt)ermore" t)ere is no s)o,in+ t)at t)e %armers bene%ited %rom t)e a+reement.! :22.66 2t is ,ell to remember t)e %undamental rule t)at )e ,)o alle+es must bear t)e burden o% $roo% --- ,i incu(bit probatio -ui dicit, non -ui negat" i.e." >e ,)o asserts" not )e ,)o denies" must $ro3e.!;; ()is %inds +reater a$$lication in t)e case at bar" +i3en t)at t)e Public ProsecutorBs baseless %indin+ o% $robable cause ,ron+%ull# $laces
6<

12@@2NG -N@ GO:.RN0.N( CON(R-C(S" '<6' .d." $$. 6 and E-<. ()e Se3ent) F)ereas clause o% t)e 0O/ $ro3ides&

F)ereas" t)e PRO:2NC." considerin+ its ot)er de3elo$ment $riorities" is constrained b# $ersonnel and ot)er limitations to e%%icientl# mana+e" administer" and im$lement t)e Pro3incial Rice Pro+ram" es$eciall# t)e Su$er3ised Credit Facilit#=! ;7 G.R. No. ''';<<" 'C No3ember '<<C" 6;E SCR- ''6. See also Santos 3. Peo$le" G.R. No. '6'E99" 6; 0arc) 6776" CE5 SCR- 'E5= /riarte 3. Peo$le" G.R. No. '6<65'" 67 @ecember 6776" 5'' SCR- C9'. ;' Pec)o 3. Sandi+anba#an" G.R. No. ''';<<" 'C No3ember '<<C" 6;E SCR- ''6" ';;. ;6 Alorente" 5r. 3. Sandi+anba#an" G.R. No. '66'66" '' 0arc) '<<E" ;57 P)il. E67. ;; Peo$le 3. Petralba" G.R. No. ';95'6" 69 Se$tember 677C" C;< SCR- '5E" '97= -ric)eta 3. Peo$le" G.R. No. '96577" 6' Se$tember 6779" 5;; SCR- 6<5= Peo$le 3. :entura" G.R. No. 'EC<59" 69 October 677<" 67C SCR- 5C;.

<

t)e burden o% $ro3in+ )er innocence on Petitioner" contrar# to t)e constitutional $resum$tion o% innocence.;C :22.6; ()e Public Res$ondent also +ra3el# abused )er discretion ,)en s)e ado$ted t)e recommendations t)at $ur$ort to %ind $robable cause but ,ere not su$$orted b# la, and t)e e3idence on record. 2t is ,ort) notin+ t)at u$on re3ie, o% t)e recommendation to %ile c)ar+es a+ainst Petitioner and )er co-accused" Prosecutor 8xxxx cate+oricall# stated in )er 0emorandum t)at t)ere is no basis %or t)e %indin+ t)at t)e 0O- did not +o t)rou+) $ublic biddin+" to ,it& Furt)er" t)e in3esti+atin+ $rosecutorBs %indin+ t)at t)e contract a,arded to t)e 88888 did not +o t)rou+) t)e $rocess o% $ublic biddin+ )as no basis. First" t)ere ,as no alle+ation in t)e a%%ida3it?com$laint t)at $ri3ate com$lainant ,as suin+ t)e accused b# reason o% lac* o% biddin+. Second" t)ere ,as neit)er a CO- %indin+ as to t)at e%%ect. ()e in3esti+atin+ $rosecutor cannot add e3idence b# mere sus$icion or s$eculation on t)e basis t)at t)ere ,ere no biddin+ documents at )and.!;5 :22.6C 2n e%%ect" t)ere%ore" t)e Public Res$ondent ex$anded t)e accusations a+ainst Petitioner and added +rounds not contained in t)e com$laint %iled b# Pri3ate Res$ondent. ()is is $atent +ra3e abuse o% discretion on t)e $art o% t)e Public Res$ondent" ,)o s)ould be admonis)ed t)ere%or and ,)ose %indin+s s)ould be set aside. -s t)is >onorable Court )eld in .e/ano v. X0000, et al.1#& xxx Petitioner attributes $artialit# on t)e $art o% 8xxxx @esierto %or )a3in+ $artici$ated in t)e rein3esti+ation o% t)e instant case des$ite t)e %act t)at )e earlier $artici$ated in t)e initial $reliminar# in3esti+ation o% t)e same ,)en )e ,as a S$ecial Prosecutor b# concurrin+ in t)e recommendation %or t)e %ilin+ o% t)e in%ormation be%ore t)e Sandi+anba#an. Fe a+ree ,it) t)e $etitioner. Stead%astl#" ,e )a3e ruled t)at 51e 8::37er ?18 rev3e?s " 7"se 8n "99e"6 s18u6< n85 ;e 51e s"4e 9ers8n ?18se <e73s38n 3s un<er rev3e? . 2n 2a(bales Chro(ite 'ining Co(pany v. Court o3 %ppeals" t)e decision o% t)e Secretar# o% -+riculture and Natural Resources ,as set aside b# t)is Court a%ter it )ad been establis)ed t)at t)e case concerned an a$$eal o% t)e Secretar#Is o,n $re3ious decision" ,)ic) )e )anded do,n ,)ile )e ,as #et t)e incumbent @irector o% 0ines. Fe )a3e eDuall# declared 3oid a decision rendered b# t)e Second @i3ision o% t)e National Aabor Relations Commission" because one o% its members" Commissioner Raul -Duino" $artici$ated in t)e re3ie, o% t)e case ,)ic) )e )ad earlier decided on as a %ormer labor arbiter. Ai*e,ise" t)is Court struc* do,n a decision o% Presidential .xecuti3e -ssistance 5acobo Cla3e o3er a resolution o% t)e Ci3il Ser3ice Commission" in ,)ic) )e" t)en concurrentl# its C)airman" )ad earlier concurred. H"v3n> 9"r53739"5e< 3n 51e 3n353"6 9re6343n"r# 3nves53>"538n 8: 51e 3ns5"n5 7"se "n< 1"v3n> re7844en<e< 51e :363n> 8: "n "99r89r3"5e 3n:8r4"538n, 35 ;e188ve< Xxxxx Des3er58 58 re7use 134se6: :r84 9"r53739"53n> 3n 51e rev3e? 8: 51e s"4e <ur3n> 51e re3nves53>"538n.
;C ;5 ;6

CONS(." -rt. 222" Sec. 'C(6). 0emorandum dated < @ecember 67''" -nnex __! )ereo%" $$.';-'C. G.R. No. '5<'<7" 5une ;7" 6775" C66 SCR- 567" at 56E-597.

'7

2n earlier recommendin+ t)e %ilin+ o% in%ormation" t)en S$ecial Prosecutor @esierto ,as alread# con3inced" %rom t)at moment" t)at $robable cause exists to indict t)e accused. 2t becomes a %ar%etc)ed $ossibilit# t)at in a subseDuent re3ie, o% t)e same" 8xxxx @esierto ,ould ma*e a turnabout and ta*e a $osition contradictor# to )is earlier %indin+. @ue $rocess dictates t)at one called u$on to resol3e a dis$ute ma# not re3ie, )is decision on a$$eal. Fe ta*e our bearin+s %rom 2a(bales Chro(ite 'ining Co. v. Court o3 %ppeals ,)ic) succinctl# ex$lained t)at& 2n order t)at t)e re3ie, o% t)e decision o% a subordinate o%%icer mi+)t not turn out to be %arce" t)e re3ie,in+ o%%icer must $er%orce be ot)er t)an t)e o%%icer ,)ose decision is under re3ie,= ot)er,ise" t)ere could be no di%%erent 3ie, or t)ere ,ould be no real re3ie, o% t)e case. ()e decision o% t)e re3ie,in+ o%%icer ,ould be a biased 3ie,= ine3itabl#" it ,ould be t)e same 3ie, since bein+ )uman" )e ,ould not admit t)at )e ,as mista*en in )is %irst 3ie, o% t)e case. Cojuangco, Jr. v. Presidential Commission on Good Government 78n7e<es 51e "99637";3635# 8: 51e 9r813;3538n 8n 51e rev3e?3n> 8::37er 58 1"n<6e " 7"se 1e e"r63er <e73<e<, 51usA )1ere 51e 73r7u4s5"n7es <8 n85 3ns93re 78n:3<en7e 3n 51e 8;=e753v35# "n< 349"r53"635# 8: 51e =u<>e, su71 =u<>e s18u6< 3n13;35 v86un5"r36# 8r 3: 1e re:uses, 1e s18u6< ;e 9r813;35e< :r84 1"n<63n> 51e 7"se . - 4ud+e must not onl# be im$artial but must also a$$ear im$artial as an assurance to t)e $arties t)at )is decision ,ill be 4ust. >is actuation must ins$ire t)at belie%. ()is is an instance ,)en a$$earance is as im$ortant as realit#. ()e same rule o% t)umb s)ould a$$l# to an in3esti+atin+ o%%icer conductin+ a $reliminar# in3esti+ation. ()is is t)e reason ,)# under Section '69< o% t)e %ormer Re3ised -dministrati3e Code" t)e Secretar# o% 5ustice" ,)o )as su$er3ision o3er t)e $rosecution arm o% t)e +o3ernment" is +i3en am$le $o,er to desi+nate anot)er $rosecutor to )andle t)e in3esti+ation and $rosecution o% a case ,)en t)e $rosecutor )andlin+ t)e same is ot)er,ise disDuali%ied b# $ersonal interest" or is unable or %ails to $er%orm )is dut#. (/nderlinin+ su$$lied)! :22.65 ()e same unanimit# bet,een t)e role o% $rosecutor! and 4ud+e! $ro)ibited in t)e %ore+oin+ cases +larin+l# subsists ,it) res$ect to t)e Public Prosecutor in t)e instant cases a+ainst Petitioner. >ence" t)e -ssailed Resolutions must be nulli%ied and set aside. B. THE MOA CONTAINED SUFFICIENT SAFE(UARDS TO PRE'ENT THE ACCRUAL OF UN)ARRANTED BENEFITS TO XXXXX AND TO PROTECT THE PRO'INCIAL (O'ERNMENT ''

FROM BEIN( IN+URED DISAD'ANTA(ED.

OR

:22.66 -mon+ t)e obli+ations o% 88888 under t)e 0O- is t)e im$lementation o% a s#stem %or t)e $ro$er recei$t" custod#" release and disbursement o% J88888BsK %unds" in3entor# and ot)er assets.! ;9 0ore im$ortantl#" 88888 is c)ar+ed ,it) t)e establis)ment and maintenance o% an e::373en5 3n5ern"6 "u<353n> s#s5e4 58 ensure 51"5 "sse5s "re 9r85e75e<, "778un53n> re78r<s "re re63";6e "n< "77ur"5e " mana+erial $olicies are ad)ered to" and o$erational e%%icienc# is maintained.! ;E 88888 is also tas*ed" amon+ ot)ers" to JiKssue an O%%icial Recei$t to t)e PRO:2NC. %or t)e %unds $ro3ided b# t)e PRO:2NC. to t)e FO/N@-(2ON! ;<= JiKm$lement a s#stem %or t)e $ro$er recei$t" custod#" release and disbursements o% t)e FO/N@-(2ONBs %unds" in3entor# and ot)er assets!C7= and J$Kro3ide t)e PRO:2NC. ,it) a re$ort on t)e @isbursement o% Funds" t)e Financial Condition and O$erations" and t)e o3erall $er%ormance o% t)e Pro3incial Rice Pro+ram!C'. :22.69 0oreo3er" it is still ,it)in t)e control and discretion o% t)e Pro3incial Go3ernment )o, t)e %unds ,ill be )andled b# 88888" since one o% t)e underta*in+s o% t)e $ro3ince under t)e 0O- is to J%Kormulate t)e +eneral $olicies %or t)e Pro3incial Rice Pro+ram" includin+ $olicies on identi%ication o% bene%iciaries" loan $olicies" $ersonnel $olicies and ot)ers.!C6 :22.6E (o reiterate" one o% t)e modes o% committin+ a 3iolation o% Section ;(e) is actin+ ,it) +ross inexcusable ne+li+ence" ,)ic) is described b# t)is >onorable Court in t)is ,ise& Gross inexcusable ne+li+ence does not si+ni%# mere omission o% duties nor $lainl# t)e exercise o% less t)an t)e standard de+ree o% $rudence. Rat)er" it re%ers to ne+li+ence c)aracteriGed b# t)e ,ant o% e3en t)e sli+)test care" actin+ or omittin+ to act in a situation ,)ere t)ere is a dut# to act" not inad3ertentl# but ,ill%ull# and intentionall#" ,it) conscious indi%%erence to conseDuences inso%ar as ot)er $ersons ma# be a%%ected.!C; BGross ne+li+enceB )as been so de%ined as ne+li+ence c)aracteriGed b# t)e ,ant o% e3en sli+)t care" actin+ or omittin+ to act in a situation ,)ere t)ere is a dut# to act" not inad3ertentl# but ,ill%ull# and intentionall# ,it) a conscious indi%%erence to conseDuences in so %ar as ot)er $ersons ma# be a%%ected. 2t is t)e omission o% t)at care ,)ic) e3en inattenti3e and t)ou+)tless men ne3er %ail to ta*e on t)eir o,n $ro$ert#.B!CC

;9 ;E ;< C7 C' C6 C;

CC

0O-" -rt. ;(6). 0O-" -rt. ;(E)= em$)asis and underscorin+ su$$lied. 0O-" -rt. ;('). 0O-" -rt. ;(6). 0O-" -rt. ;(''). 0O-" -rt. 6(;). 0.-. 5imeneG .nter$rises 3. ()e >onorable 8xxxx" et al." G.R. No. '55;79" 6 5une 67''" __ SCR- __. Fonacier" et al. 3. Sandi+anba#an" G.R. Nos. A-576<'" 5 @ecember '<<C" 6;E SCR- 655" __= citations omitted.

'6

:22.6< ()e abo3e cited $ro3isions in t)e contract indicate t)at Petitioner" actin+ on be)al% o% t)e Pro3incial Go3ernment" ,as dili+ent and did ta*e $ains in ensurin+ t)at t)e 0O- ,ill ser3e its intended noble $ur$ose" i.e., to bene%it t)e rice %armers in 8xxxx" ,it)out $uttin+ t)e Pro3incial Go3ernment in 4eo$ard#. :22.;7 Oet" des$ite t)e e3ident existence o% $ro3isions %or t)e $ro$er im$lementation and audit o% t)e $ublic %unds in3ol3ed in t)e 0O-" as $ro3ided b# t)e SP and t)e a$$licable la,s and rules t)ereon" t)e Public Res$ondent arbitraril# ruled t)at no suc) $ro3isions existed. 2n ma*in+ suc) rulin+" t)e Public Res$ondent ,)imsicall# i+nored t)e %indin+s and recommendation o% t)e re3ie,in+ $rosecutor t)at t)e elements o% a 3iolation o% Section ;(e) o% R- ;7'< do not exist" )ence" t)e cases a+ainst Petitioner s)ould be set aside %or lac* o% $robable cause to )old )er liable. 2t s)ould be recalled t)at +ra3e abuse o% discretion obtains ,)en t)e 8xxxx does not ta*e essential %acts into consideration in t)e determination o% $robable cause"!C5 as t)e Public Res$ondent did in t)e case at bar. C. AT ALL TIMES, PETITIONER ACTED )ITHIN THE BOUNDS OF HER AUTHORIT/ AND IN (OOD FAITH.

:22.;' 2n %indin+ $robable cause a+ainst Petitioner" t)e Public Res$ondent %ailed to a$$reciate t)e totalit# o% circumstances and t)e unmista*able %acts on record t)at t)e a,ard o% t)e 0O- ,it)out a $rior $ublic biddin+ is borne out o% PetitionerBs )onest belie% t)at s)e )ad t)e aut)oriGation and su$$ort o% t)e SP" and t)at s)e ,as $ursuin+ a $ro+ram t)at ,ill u$li%t t)e Dualit# o% li%e o% J8xxxxBsK rice %armers t)rou+) a Pro3incial Rice Pro+ram" ,)ic) is intended to increase t)e %armersB earnin+ $otentials!C6. :22.;6 Sim$l# stated" t)e Public Res$ondent +ra3el# abused )er discretion b# disre+ardin+ t)e ob3ious +ood %ait) o% Petitioner. 2t is ,ell to remember t)at a %indin+ o% $robable cause %or a 3iolation o% Section ;(e) o% R- ;7'< reDuires t)at t)e alle+ed bad %ait) o% t)e accused be e3ident" meanin+" bad %ait) per se is not enou+).C9 -s discussed b# t)is >onorable Court in Collantes v. 'arcelo 4& Fell-settled is t)e rule t)at +ood %ait) is al,a#s $resumed and t)e C)a$ter on >uman Relations o% t)e Ci3il Code directs e3er# $erson" inter alia" to obser3e +ood %ait) ,)ic) s$rin+s %rom t)e %ountain o% +ood conscience. S$eci%icall#" " 9u;637 8::37er 3s 9resu4e< 58 1"ve "75e< 3n >88< :"351 3n 51e 9er:8r4"n7e 8: 13s <u53es. M3s5"@es 7844355e< ;# " 9u;637 8::37er "re n85 "7538n";6e ";sen5 "n# 76e"r s18?3n> 51"5 51e# ?ere 4853v"5e< ;# 4"637e 8r >r8ss ne>63>en7e "48un53n> 58 ;"< :"351 . L1ad %ait)B does not sim$l# connote bad moral 4ud+ment or ne+li+ence. ()ere must be some dis)onest $ur$ose or some moral obliDuit# and conscious doin+ o% a ,ron+" a breac) o% a s,orn dut# t)rou+) some moti3e or intent or ill ,ill. 2t $arta*es o% t)e nature o% %raud. 2t contem$lates a state o% mind a%%irmati3el# o$eratin+ ,it) %urti3e desi+n or some moti3e o% sel%-interest or ill ,ill %or ulterior $ur$oses.!C<
C5

C6 C9

CE C<

SistoGa 3. @esierto" G.R. No. 'CC9EC" ; Se$tember 6776" __ SCR- __" __= citin+ 1a#lon 3. O%%ice o% t)e 8xxxx and t)e Sandi+anba#an" G.R. No. 'C69;E" 'C @ecember 677'" __ SCR__. 0O-" ()ird F)ereas clause. See 1a#lon 3. O%%ice o% t)e 8xxxx and Sandi+anba#an" G.R. No. 'C69;E" 'C @ecember 677'" _ SCR- _" __. G.R. Nos. '69776-79" 'C -u+ust 6779" __ SCR- __. Ibid., at __= citations omitted. .m$)asis and underscorin+ su$$lied.

';

:22.;;

()e case o% Sisto+a v. Desierto56 %urt)er stated&

.3identl#" 4ere ;"< :"351 8r 9"r53"635# "n< ne>63>en7e 9er se "re n85 en8u>1 :8r 8ne 58 ;e 1e6< 63";6e un<er 51e 6"? since t)e "75 8: ;"< :"351 or $artialit# must in t)e %irst $lace be e3ident or 4"n3:es5" res$ecti3el#" ,)ile t)e ne+li+ent deed s)ould bot) be +ross and inexcusable. I5 3s :ur51er re2u3re< 51"5 "n# 8r "66 8: 51ese 48<"6353es 8u>15 58 resu65 3n un<ue 3n=ur# 58 " s9e73:3e< 9"r5#.!5'

:22.;C 2t is undis$uted t)at Petitioner ,as actin+ ,it)in )er $o,ers as Go3ernor to contract ,it) t)ird $arties" includin+ NGOs li*e 88888" 56 $ursuant to Section C65(b)(3i) o% t)e AGC. ()e SP actuall# aut)oriGed Petitioner t)rou+) its Resolution No. 7''-765;" to ne+otiate and enter into t)e 0O-" ,)ic) s)all be sub4ect to t)e re3ie, and rati%ication! o% t)e SP. Si+ni%icantl#" t)e 0O- ,as rati%ied and a$$ro3ed b# t)e SP t)rou+) Resolution No. 7;.5C :22.;5 ()e rulin+ in 7ergara v. X000055 is instructi3e. 2n said case" t)e Cit# Council o% Calamba issued a resolution aut)oriGin+ t)e 0a#or to ne+otiate ,it) lando,ners ,it)in t)e 3icinit# o% certain baran+a#s %or a ne, cit# )all site. Pursuant to suc) resolution" t)e 0a#or entered into se3eral a+reements" i.e., 0emorandum o% -+reement" @eed o% Sale" @eed o% 0ort+a+e" and @eed o% -ssi+nment. Said a+reements ,ere submitted to t)e Cit# Council but ,ere not rati%ied. ()is >onorable Court" in a%%irmin+ t)e %indin+s o% t)e 8xxxx t)at t)ere ,as no $robable cause to c)ar+e t)e accused t)erein %or 3iolation o% Section ;(e) o% R- ;7'<" )eld t)at e3en t)e lac* o% rati%ication b# t)e Cit# Council does not render t)e contracts in3alid" or result in criminal liabilit# on t)e $art o% t)e local c)ie% executi3e.56 :22.;6 2n t)is case" t)at t)e SP sa, it %it to aut)oriGe Petitioner to enter into t)e 0O- si+ni%ies t)at t)e terms o% t)e contract ,ere amenable to t)e bod#" and t)e le+islati3e council members )ad no ob4ections to PetitionerBs exercise o% )er $o,er as +o3ernor to re$resent t)e $ro3ince in all its business transactions. :22.;9 2n 3ie, o% t)e %ore+oin+" PetitionerBs +ood %ait) cannot be doubted. S)e )ad reasonable +round to belie3e t)at enterin+ into t)e 0O- ,ill cause no undue in4ur# to t)e Pro3incial Go3ernment" and instead" it ,ill be bene%icial to )er constituents" ,)o are com$rised mostl# o% rice %armers. Petitioner could not also )a3e t)ou+)t t)at 88888 could deri3e un,arranted bene%its %rom t)e 0O-" since t)ere ,ere am$le measures set in $lace to ensure t)at t)e $ublic %unds earmar*ed %or t)e Pro3incial Rice Pro+ram ,ill accrue to t)e bene%it o% t)e $ublic. II PUBLIC RESPONDENT ACTED )ITH (RA'E ABUSE OF DISCRETION AMOUNTIN( TO LAC* OR EXCESS OF
57

5' 56 5; 5C 55 56

G.R. No. 'CC9EC" ; Se$tember 6776" __ SCR- __" __. See also GiduDuio 3. Peo$le" G.R. No. '65<69" 6C -$ril 677<" __ SCR- __. .m$)asis and underscorin+ su$$lied. See Re$. -ct No. 9'67" Secs. ;C-;5. Resolution No. 76'" -nnex __! )ereo%. Resolution No. ;" -nnex __! )ereo%. G.R. No. '9C569" '6 0arc) 677<" 5E7 SCR- 6<;. Ibid., at __.

'C

+URISDICTION IN ISSUIN( THE ASSAILED RESOLUTIONS FINDIN( PROBABLE CAUSE FOR MAL'ERSATION OF PUBLIC FUNDS. NOT ALL THE ELEMENTS OF SAID CRIME ARE PRESENT. D. PETITIONER XXXXX HAD NO CUSTOD/ OF THE SUB+ECT PUBLIC FUNDS AND SHE IS NOT THE ACCOUNTABLE OFFICER FOR THE SAME.

:22.;E 2n .orres v. People58, t)is >onorable Court ex$lained t)e co3era+e o% -rticle 6'9 o% t)e RPC" t)us& -n accountable $ublic o%%icer" ,it)in t)e $ur3ie, o% -rticle 6'9 o% t)e Re3ised Penal Code" is one ,)o )as custod# or control o% $ublic %unds or $ro$ert# b# reason o% t)e duties o% )is o%%ice. ()e nature o% t)e duties o% t)e $ublic o%%icer or em$lo#ee" t)e %act t)at as $art o% )is duties )e recei3ed $ublic mone# %or ,)ic) )e is bound to account and %ailed to account %or it" is t)e %actor ,)ic) determines ,)et)er or not mal3ersation is committed b# t)e accused $ublic o%%icer or em$lo#ee.!5E

:22.;< ()us" to be liable %or 0al3ersation o% Public %unds under -rticle 6'9 o% t)e RPC" t)is >onorable Court ruled in .anggote v. Sandiganbayan"5< t)at it is essential t)at t)ere is $roo% t)at 51e "778un5";6e 8::37er )as recei3ed $ublic %unds but t)at ,)en demand t)ere%or is made" )e is unable to satis%actoril# account %or t)e same. :22.C7 2n t)is case" ,)ile Petitioner is admittedl# a $ublic o%%icer" as t)e Go3ernor o% t)e $ro3incial +o3ernment o% 8xxxx" s)e is not t)e $ublic o%%icer )a3in+ custod# or control o% t)e sub4ect $ublic %unds" and it is not amon+ )er duties or %unctions as local c)ie% executi3e to account %or t)e same. Since Petitioner is not an accountable $ublic o%%icer" s)e did not" as s)e could not )a3e committed t)e crime o% 0al3ersation o% Public Funds. :22.C' 2t is settle t)at %or one to be c)ar+ed ,it) 0al3ersation o% Public Funds under -rticle 6'9 o% t)e RPC" "66 t)e constituti3e elements t)ereo% must be $resent. :22.C6 2t is be#ond dis$ute t)at t)e second and t)e t)ird elements enumerated abo3e are not $resent. Clearl# not e3en a mere pri(a 3acie case %o 0al3ersation o% Public Funds ,as $resent a+ainst Petitioner. ()e Public Res$ondent s)ould )a3e outri+)tl# dismissed t)e same a+ainst Petitioner. :22.C; 2n 7illanueva et al. v. 9ple,#6 t)is >onorable Court u$)eld t)e Public Res$ondentBs immediate dismissal o% a com$laint %or its %ailure to establis) mere prima acie e3idence on its %ace&
59 5E

5< 67

G.R. No. '9579C" ;' -u+ust 67''. (orres 3. Peo$le" G.R. No. '9579C" ;' -u+ust 67''" citin+ -le4o 3. Peo$le" G.R. No. '9;;67" 0arc) 6E" 677E" 557 SCR- ;66" ;C7. G.R. No. _" _" 6;6 SCR- 69;= em$)asis su$$lied. G.R. No. '65'65" No3ember 'E" 6775" C95 SCR- 5;<" at 55C-559= em$)asis and underscorin+ su$$lied.

'5

Fun7538n 8: 51e (8vern4en5 Pr8se7u58r ()e determination o% $robable cause durin+ a $reliminar# in3esti+ation is a %unction o% t)e +o3ernment $rosecutor" ,)o in t)is case is t)e xxxxx. -s a rule" t)e Court does not inter%ere in t)e xxxxxIs exercise o% discretion in determinin+ $robable cause" unless t)ere are com$ellin+ reasons. xxx xxx xxx Nonet)eless" t)e Court ma# exercise its certiorari $o,er ,)en t)e +o3ernment $rosecutor unreasonabl# re%uses to %ile an in%ormation e3en i% clearl# ,arranted b# t)e e3idence. ()is certiorari $o,er ,as reco+niGed in Socrates 3. Sandi+anba#an" ,)ic) enumerated t)e remedies o% t)e o%%ended $art# or com$lainant" as %ollo,s& (') to %ile an action %or mandamus in case o% +ra3e abuse o% discretion= (6) to lod+e a ne, com$laint a+ainst t)e o%%enders be%ore t)e xxxxx and reDuest t)e conduct o% a ne, examination as reDuired b# la,= (;) to institute administrati3e c)ar+es a+ainst t)e errin+ $rosecutor" a criminal com$laint under -rticle 67E o% t)e Re3ised Penal Code" or a ci3il action %or dama+es under -rticle 69 o% t)e Ci3il Code= (C) to secure t)e a$$ointment o% anot)er $rosecutor= or (5) to institute anot)er criminal action i% no double 4eo$ard# is in3ol3ed. N8 Pr34" F"73e Ev3<en7e /nder t)e $resent %actual milieu" $etitioners clearl# %ailed to establis) t)e %ollo,in+ elements o% a 3iolation o% Section ;(e) o% t)e -ntiGra%t and Corru$t Practices -ct& xxx xxx xxx A 9re6343n"r# 3nves53>"538n 78ns535u5es " re"63s537 =u<373"6 "99r"3s"6 8: 51e 4er35s 8: " 7"se. T1e 78496"3n"n5 4us5 "<<u7e su::373en5 9r88: 8: >u365 "s ;"s3s :8r " 7r343n"6 71"r>e 3n 78ur5. -s discussed earlier" t)e $resent $etitioners did not submit an# $roo% in su$$ort o% t)eir accusations a+ainst res$ondents. >ence" t)e Court is bound to res$ect t)e de$ut# xxxxxIs $ro%essional 4ud+ment in %indin+ t)e case dismissible" absent a s)o,in+ o% +ra3e abuse o% discretion. Go3ernment resources and t)e time and e%%ort o% $ublic o%%icials ,ould be needlessl# ,asted i% t)e courts allo, unmeritorious cases to be %iled and +i3en due course. 2t ,ould be better to dismiss a case" li*e t)e $resent one in ,)ic) t)e circumstances blatantl# s)o, t)at t)e act com$lained o% does not constitute t)e o%%ense c)ar+ed.!

:22.CC -$$l#in+ t)e %ore+oin+ 4uris$rudential +uideline o% t)is >onorable Court" it be)oo3es t)e Public Res$ondent at t)e outset to sim$l# <3s43ss t)e com$laint a+ainst $etitioner %or %ailure to $resent e3en mere prima acie e3idence. 2nstead" t)e Public Res$ondent disre+arded t)e la, and settled 4uris$rudence and arbitraril# issued t)e -ssailed Resolutions" to $rosecute Petitioner ,it) suc) baseless c)ar+e. ()is >onorable

'6

Court certainl# cannot countenance suc) ille+al conduct es$eciall# %rom a )i+) constitutional o%%ice as t)e Public Res$ondent. :22.C5 ()us" Public Res$ondent committed +ra3e abuse o% discretion amountin+ to lac* or excess o% 4urisdiction in issuin+ and a$$ro3in+?a%%irmin+ t)e -ssailed Resolutions. ()e %act t)at t)e absence o% t)e %ore+oin+ elements s)ould )a3e establis)ed t)e absence o% an# $robable cause to )old Petitioner liable %or 0al3ersation o% Public Funds" and t)us ,arrantin+ no less t)an an outri+)t dismissal o% t)e c)ar+e a+ainst Petitioner" is $roo% in itsel% t)at Public Res$ondent acted in a ,)imsical and arbitrar# manner" contrar# to la, and settled 4uris$rudence" in %indin+ instead" t)at t)ere is $robable cause to c)ar+e Petitioner ,it) said o%%ense. E. THERE IS NO SHO)IN( THAT PETITIONER DERI'ED AN/ BENEFIT FROM THE LOAN PROCEEDS FOR THE PRO'INCIAL RICE PRO(RAM.

:22.C6 2n t)e -ssailed Resolutions" Public Res$ondent a3ers t)at t)ere is no s)o,in+ t)at t)e %armers bene%ited %rom t)e J0O-K! 6' and t)at t)e J-ccusedK ,ere not able to s)o, t)rou+) documentar# e3idence" or at least" a $ro+ram re$ort t)at t)e mone#Preac)edPt)e su$$osed bene%iciaries o% t)e $ro3incial rice $ro+ram!66 Suc) arbitrar# s,ee$in+ conclusion is erroneous and baseless as it disre+ards t)e o3er,)elmin+ e3idence on record ,)ic) $ro3e t)at t)e $ublic %unds" indeed" did not onl# reac) but ,ere li*e,ise utiliGed b# t)e 8xxxx %armers. :22.C9 F3rs5, as admitted b# Public Res$ondent in t)e First -ssailed Resolution" t)ere is not)in+ in t)e 0O- as to t)e amount o% t)e contract.! 6; ()e absence o% a contract $rice in t)e 0O- is $roo% in itsel% t)at no mone#" ,)et)er b# a+reement or ot)er,ise" ,as e3er $assed on b# Petitioner %or t)e bene%it o% 88888. Rat)er" ,)at is clear is t)at 88888" b# 3irtue o% t)e 0O-" 3olunteered to assist in t)e im$lementation o% t)e same b# t)e $ro3incial +o3ernment. ()us" Petitioner did not +rant an# amount o% mone#" in %a3or o% 88888. Notabl#" no e3idence ,as e3en $resented and considered in order to establis) a ,ell-en+endered belie% t)at suc) anomalous transaction e3en too* $lace. Public Res$ondent based instead its %indin+s on mere s$eculation and surmises" suc) as t)e alle+ed %act t)at -ccused 8xxxx )eld con%lict in interest $ositions" i.e." t)e $osition o% $ro3incial le+al o%%icer and director o% 88888" at t)e time t)at t)e 0O,as entered into" t)us raisin+ t)e sus$icion as to t)e le+alit# o% t)e 0O-" 6C ,)ere in %act" easil# 3eri%iable records ,ould s)o, t)at at t)at time" -ccused 8xxxx ,as no lon+er a director o% 88888.Q In 851er ?8r<s, A77use< Xxxxx ?"s n85, "s 1e 78u6< 1"ve n85 ;een 3n " 78n:6375 8: 3n5eres5 98s3538n 3n"s4u71 "s 1e <3< n85 186< s"3< 98s3538ns s34u65"ne8us6#. :22.CE Se78n<, t)e o3er,)elmin+ e3idence on record establis) t)at t)e %unds ,ent to t)e intended bene%iciaries. ()e loan a$$lications" :asunduan and t)e Duantit# o% %arm in$uts65 clearl# s)o, t)at t)e $ublic %unds ,ere not onl# +i3en to t)e 8xxxx %armers b# ,a# o% loan but t)at t)e# utiliGed t)e same to increase t)eir #ield and income. Sim$l# stated" 88888 merel# s)ared its tec)nical" %inancial" and mana+erial ex$ertise to $ro$erl# monitor t)e Su$er3ised Credit Facilit# o% t)e $ro+ram b# actin+ as t)e conduit!
6' 66 6; 6C 65

Second -ssailed Resolution" -nnex _! )ereo%. First -ssailed Resolution" $$. 'C-'5" -nnex _! )ereo%. First -ssailed Resolution" $. '7. First -ssailed Resolution" $. ''. -nnex _! )ereo%.

'9

%rom t)e $ro3incial +o3ernment to t)e %armer bene%iciaries. 2t is t)us be#ond dis$ute t)at t)e Priorit# >#brid Price Pro+ram ,as success%ul and t)at t)e $ublic %unds did not redound to t)e bene%it o% 88888 or Petitioner. :22.C< T13r<, as reco+niGed b# Prosecutor 8xxxx in )er recommendation" t)e CO-Bs %indin+ as to t)e existin+ loan recei3ables is $roo% in itsel% t)at t)e amount )ad been released or loaned to t)e intended bene%iciaries" t)e 8xxxx %armers" and t)at it ,as not used %or t)e $ersonal bene%it o% Petitioner or 88888.66 :22.57 F8ur51, Prosecutor 8xxxx recommended t)at t)ere be %urt)er in3esti+ation conducted because o% t)e need to resol3e t)e %ollo,in+ issues& (a) F)et)er t)e %ull amount o% P)P65 0illion ,as utiliGed b# 88888= (b) ,)et)er t)e P65 0illion ,as e3entuall# returned to t)e $ro3incial +o3ernment= (c) ,)et)er t)e $ro3incial +o3ernment $ro3ided %unds %or t)e o$eration reDuirement o% t)e $ro+ram= (d) ,)et)er a CO- re$ort exists relati3e to t)e im$lementation o% t)e Priorit# >#brid Rice Pro+ram= (e) ,)et)er 88888 is re+istered ,it) t)e S.C.69 :22.5' Suc) recommendation clearl# s)o,s t)at t)ere is no $robable cause to indict Petitioner %or an# c)ar+e" as t)e basis %or t)e c)ar+e a+ainst )er" i.e." t)at t)e P)P65 0illion ,as a$$ro$riated %or $ri3ate $ur$oses" is based merel# on s$eculation and unsu$$orted b# e3idence inasmuc) as t)ere ,as a need to %urt)er in3esti+ate to determine t)e existence o% t)e %actual basis %or t)e c)ar+e a+ainst Petitioner. :22.56 F3:51, t)at t)e $ublic %unds ,ere not used b# an#one %or $ri3ate $ur$oses is su$$orted b# t)e %indin+ o% t)e re3ie,in+ Prosecutor" to ,it& 2% indeed t)e loans did not reac) t)e intended bene%iciaries and considerin+ t)e enormit# o% t)e amount in3ol3ed" lo+icall#" t)e $ersons ,)o ,ill most li*el# initiate t)e com$laint in t)is case ,ould be t)e 8xxxx %armers t)emsel3es. 2nstead" t)e $ri3ate-com$lainant )ere is 8xxxx P. 8xxxx" an ordinar# tax$a#er and a resident o% 8xxxx" ,)o ma*es no 3alid claims o3er t)e loanable amount nor alle+ation t)at )e )as been $re4udiced in an# ,a# b# t)e manner t)e 88888 mana+ed t)e $ublic %unds.!6E :22.5; 2n %act" t)e record indubitabl# establis)es t)at t)e c)ar+es a+ainst Petitioner ,ere $oliticall# moti3ated" inasmuc) as it ,as Con+ressman Faustino G. @#" PetitionerBs $olitical o$$onent" ,)o sent a letter to t)e CO- Duestionin+ t)e 3alidit# and le+alit# t)ereo%.6< Ai*e,ise" Pri3ate Res$ondent is also a *no,n $olitical o$$onent o% Petitioner. ()e %ore+oin+" as ,ell as t)e %act t)at t)e c)ar+es a+ainst Petitioner coincided ,it) t)e cam$ai+n $eriod at t)at time" clearl# s)o, t)at t)e same ,as done merel# to besmirc) t)e inte+rit# o% Petitioner so as to a%%ect t)e results o% t)e ensuin+ elections at t)at time a+ainst Petitioner and in %a3or o% )er $olitical o$$onents. :22.5C From t)e %ore+oin+" it is be#ond dis$ute t)at t)e %ourt) element o% 0al3ersation is not $resent. ()ere is not)in+ in t)e Com$laint -%%ida3it or in t)e record t)at establis)es t)e alle+ation t)at Petitioner a$$ro$riated %or )er o,n $ersonal use and bene%it t)e $roceeds o% t)e loan" ,)ic) ,as obtained b# t)e $ro3incial +o3ernment %or $ur$oses o% t)e Priorit# >#brid Rice Pro+ram. :22.55 (o reiterate" t)ere is no s)o,in+ t)at Petitioner and?or 88888 +ained an#t)in+ %rom t)e execution o% t)e 0O- and t)e tem$orar# trans%er o% t)e loan $roceeds. -nd it is not incumbent u$on eit)er o% t)em to $ro3e t)at t)e# did not a$$ro$riate" ta*e"
66 69 6E 6<

0emorandum dated < @ecember 67''" $. ''" -nnex _! )ereo%. 0emorandum dated < @ecember 67''" $$. ;-C. Id. 0emorandum dated < @ecember 67''" $. 6.

'E

or misa$$ro$riate t)e $ublic %unds" ,)et)er intentionall# or t)rou+) ne+li+ence. Suc) burden rests on t)e Pri3ate Res$ondent and t)e $rosecution. >a3in+ %ailed to carr# t)is burden" no $robable cause can be deemed to exist to indict Petitioner %or 0al3ersation o% Public Funds. :22.56 Not,it)standin+ t)e %ore+oin+" Public Res$ondent" t)rou+) t)e -ssailed Resolution" still ruled t)at t)ere ,as $robable cause to c)ar+e Petitioner ,it) 0al3ersation o% Public Funds. Clearl#" Public Res$ondent acted ,it) +ra3e abuse o% discretion" amountin+ to lac* or excess o% 4urisdiction in disre+ardin+ t)e o3er,)elmin+ e3idence on record s)o,in+ t)e 3alidit# and le+alit# o% t)e 0O- and its im$lementation" in t)at $ublic %unds ,ent to and ,ere utiliGed b# t)e intended bene%iciaries" t)e 8xxxx %armers" and in rulin+ t)at t)ere ,as $robable cause to )old Petitioner %or trial" not,it)standin+ t)e absence o% e3idence to su$$ort suc) %indin+. F. THERE IS NO SHO)IN( THAT PETITIONER NE(LI(ENTL/ CAUSED OR CONSENTED TO AN/ APPROPRIATION, TA*IN(, OR MISAPPROPRIATION OF PUBLIC FUNDS.

:22.59 ()e e3idence li*e,ise %ails to establis) t)at t)ere ,as ne+li+ence on t)e $art o% Petitioner in t)e $er%ormance o% )er %unctions as Go3ernor t)at enabled 88888 to a$$ro$riate" ta*e" or misa$$ro$riate t)e loan $roceeds %or t)e $ri3ate $ur$oses o% t)e NGO. :22.5E 2n &eano v. ;on. Do(ingo86, t)e Court laid do,n t)e standard --- a*in to t)at %or tort cases --- %or determinin+ t)e existence o% ne+li+ence in a case %or 0al3ersation o% Public Funds t)rou+) abandonment or ne+li+ence. ()us& Ne+li+ence is t)e omission to do somet)in+ ,)ic) a reasonable man" +uided b# t)ose considerations ,)ic) ordinaril# re+ulate t)e conduct o% )uman a%%airs" ,ould do" or t)e doin+ o% somet)in+ ,)ic) a $rudent and reasonable man ,ould do. ()e test b# ,)ic) to determine t)e existence o% ne+li+ence in a $articular case ma# be stated as %ollo,s& @id t)e de%endant in doin+ t)e alle+ed ne+li+ent act use t)at reasonable care and caution ,)ic) an ordinar# $rudent $erson ,ould )a3e used in t)e same situationR 2% not" )e is +uilt# o% ne+li+ence. ()e la, )ere in e%%ect ado$ts t)e standard su$$osed to be su$$lied b# t)e ima+inar# conduct o% t)e discreet $ater%amilias o% t)e Roman Aa,. ()e existence o% ne+li+ence in a +i3en case is not determined b# re%erence to t)e $ersonal 4ud+ment o% t)e actor in t)e situation be%ore )im. ()e Aa, considers ,)at ,ould be rec*less" blame,ort)#" or ne+li+ent in t)e man o% ordinar# intelli+ence and $rudence and determines liabilit# b# t)at.!9'

:22.5< Public Res$ondent" )o,e3er" acted ,it) +ra3e abuse o% discretion amountin+ to lac* or excess o% 4urisdiction in issuin+?a$$ro3in+ t)e -ssailed Resolutions %indin+ $robable cause a+ainst Petitioner inasmuc) as it $laces t)e burden o% $ro3in+ t)eir innocence on Petitioner and )er co-accused" contrar# to t)e constitutional $resum$tion o% innocence.96 ()e %ollo,in+ erroneous statement is ,ort) )i+)li+)tin+" to ,it&
97 9' 96

G.R. No. EC;9E" C 5ul# '<<'" '<E SCR- E77. Id., citin+ Aa#u+an 3. 2ntermediate -$$ellate Court" '69 SCR- ;6;" ;96-;9; ('<EE). Constitution" -rt. 222" Sec. 'C(6).

'<

1# deliberatel# +i3in+ $re%erence to 88888 in de%iance to t)e rules on +o3ernment $rocurement" addin+ to it t)e %act t)at t)e res$ondents ,ere not able to s)o, t)rou+) documentar# e3idence" or at least" a $ro+ram re$ort" t)at t)e mone# +i3en to 88888 actuall# reac)ed t)rou+) a credit %acilit# t)e su$$osed bene%iciaries o% t)e $ro3incial rice $ro+ram" t)e act o% Go3ernor 8xxxx...is as +ood as $ermittin+" t)rou+) abandonment or ne+li+ence" J88888K to ta*e suc) $ublic %unds.!9; :22.67 No,)ere in t)e 0O- does it s)o, t)at Petitioner +a3e )er consent to 88888Bs a$$ro$riation" ta*in+" or misa$$ro$riation o% t)e loan $roceeds --- as in %act none o% t)ese occurred )ere. 2nstead" t)e a+reement merel# in3ol3ed constitutin+ 88888 as a c)annel t)rou+) ,)ic) t)e $ublic %unds ,ill reac) t)e %armer bene%iciaries. :22.6' Rat)er" ,)at is clearl# establis)ed on record is t)at t)e 0O- contained t)e necessar# $ro3isions to ensure t)at t)e %unds released to t)e NGO are $ro$erl# accounted %or. :22.66 F3rs5, under t)e 0O-" 88888" )ad t)e obli+ation" amon+ ot)ers" to ensure t)at o%%icial recei$ts ,ere issued to t)e $ro3incial +o3ernment %or t)e %unds to be loaned out to t)e 8xxxx %armers"9C im$lement a s#stem %or t)e $ro$er recei$t" custod#" release and disbursement! o% %unds" in3entor# and ot)er assets.! 95 88888 ,as li*e,ise c)ar+ed ,it) t)e maintenance o% an e%%icient internal auditin+ s#stem to ensure t)at assets are $rotected" accountin+ records are reliable and accurate" mana+erial $olicies are ad)ered to" and o$erational e%%icienc# is maintained! 96 as ,ell as t)e im$lementation o% t)e -ccountin+ and 0ana+ement 2n%ormation S#stem to record and monitor transactions.!99 :22.6; Clearl#" contrar# to t)e %indin+ under t)e First -ssailed Resolution" t)e %ore+oin+ s)o, t)at t)ere is no basis to )old t)at t)ere are no sti$ulations under t)e J0O-KPas to t)e terms o% re%erence ,it) res$ect to t)e sco$e o% ser3ices.! 9E Rat)er" ,)at is e3ident %rom t)e record is t)at t)ere are su%%icient +uidelines ,it) res$ect to t)e im$lementation o% t)e Priorit# >#brid Rice Pro+ram. :22.6C Se78n<, on ;' 5anuar# 6776" t)e SP odurin+ its re+ular session" resol3ed" t)rou+) its Resolution No. 7<" as t)e to aut)oriGe t)e execution o% t)e 0O-. 2n doin+ so" t)e SP li*e,ise resol3ed t)at releases and disbursements $ursuant to t)e 0O- ,ould also be strictl# sub4ect to t)e usual accountin+ and auditin+ rules $ursuant to t)e CORules and Re+ulations and ot)er a$$licable la,s on t)e matter. 9< 2n ot)er ,ords" t)e a$$licable la,s are deemed ,ritten in t)e 0O-. .3en ,it)out suc) $ronouncement o% t)e SP and t)e sa%e+uards as contained in t)e 0O-" t)e a$$licable la,s are deemed ,ritten into t)e 0O-" and its a$$lication cannot be disa3o,ed b# t)e $arties" muc) less t)e Public Res$ondent.E7 :22.65 (o reiterate" t)ere is no s)o,in+ t)at Petitioner and?or 88888 +ained an#t)in+ %rom t)e execution o% t)e 0O- and t)e tem$orar# trans%er o% t)e loan $roceeds.
9; 9C 95 96 99 9E 9<

E7

Resolution dated '' 5anuar# 67''. 0O-" $. 6" -rt. ; ('). 0O-" $. 6" -rt. ; (6). 0O-" $. ;" -rt. ; (E). 0O-" $. ;" -rt. ; (9). First -ssailed Resolution" $. '7. See Resolution No. ''-7<, attac)ed as -nnex 1! o% PetitionerBs Counter--%%ida3it %iled ,it) t)e O%%ice o% t)e 8xxxx on '9 0a# 6779. See (on+*o 3. 0anu%acturers Ai%e 2nsurance Co. (P)ils.)" 2nc." et al." G.R. No. '69666" 6< 5une 67'7" 666 SCR- 5E.

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-nd it is not incumbent u$on eit)er o% t)em to $ro3e t)at t)e# did not a$$ro$riate" ta*e" or misa$$ro$riate t)e $ublic %unds" ,)et)er intentionall# or t)rou+) ne+li+ence. Suc) burden rests on t)e Public and Pri3ate Res$ondents. :22.66 2nstead o% carr#in+ out suc) burden" Public and Pri3ate Res$ondents" instead" s)i%ted t)e burden to t)e Petitioner. ()e Public and Pri3ate Res$ondent s)ould not be allo,ed to s)i%t t)e burden o% establis)in+ t)e $resence o% t)e elements and?or $robable cause a+ainst t)e Petitioner. ()e Public and Pri3ate Res$ondents )a3e onl# o%%ered s$eculation" n85 9r88:" as to t)e existence o% t)e alle+ed $robable cause a+ainst Petitioner. 2t is a basic rule in e3idence t)at 51e ;ur<en 8: 9r88: 3s 8n 51e 9"r5 8: 51e 9"r5# ?18 4"@es 51e "66e>"538ns S ei incu(bit probatio, -ui dicit, non -ui negat.E' 2% t)e Public and Pri3ate Res$ondents claim t)at Petitioner committed unla,%ul acts" t)en it must $ro3e its claim b# com$etent e3idence" rel#in+ on t)e stren+t) o% its o,n e3idence and not u$on t)e ,ea*ness o% t)at o% t)e accused. E6 >a3in+ %ailed to carr# t)is burden" no $robable cause can be deemed to exist to indict Petitioner %or 0al3ersation o% Public Funds. :22.69 ()us" Public Res$ondent clearl# acted in a ,)imsical and ca$ricious manner in s)i%tin+ t)e burden o% $ro3in+ t)e commission o% t)e o%%ense or t)e $robable cause t)ereo%" on Petitioner. :22.6E 2n li+)t o% t)e %ore+oin+ discussion on t)e actions ,it)out or in excess o% aut)orit# o% t)e Public Res$ondent" it is clear t)at t)e Public Res$ondent acted" and continues to act" ,it) +ra3e abuse o% discretion in re%usin+ to& (a) dismiss outri+)t t)e Com$laint -%%ida3it ,)ic) is insu%%icient to commence t)e conduct o% criminal or administrati3e $roceedin+s= (b) consider t)e o3er,)elmin+ e3idence on record t)at establis) t)at t)ere is no $robable cause to c)ar+e Petitioner ,it) an# o%%ense as t)e e3idence on record" instead" indubitabl# s)o, t)at Petitioner did not commit an# ille+al or unla,%ul acts(s) and Petitioner acted at all times in +ood %ait)" ,it) t)e aut)orit# and a$$ro3al o% t)e SP" and ,it)in t)e bounds o% )er aut)orit#= (c) immediatel# dismiss or disa$$ro3e t)e recommendation o% %ilin+ c)ar+es a+ainst t)e %or $al$able ,ant o% merit or insu%%icienc# in substance. :22.6< ()e Public Res$ondent )as t)e $ublic dut# to determine t)e su%%icienc# o% t)e com$laint" and t)is is done b# e3aluatin+ t)e recitals and annexes?e3idence t)ereon. ()is is to establis) $robable cause -- to en+ender a ,ell-%ounded belie% t)at res$ondent committed a crime and t)at )e is $robabl# +uilt# t)ereo%. 2n t)is case" no ,a# can Public Res$ondent %ind t)e -%%ida3it Com$laint su%%icient and %ind $robable cause on t)e basis o% o3er,)elmin+ e3idence ,)ic) s)o, t)at Petitioner did not commit an# ille+al?unla,%ul act(s). ()us" )ad Public Res$ondent considered t)e e3idence on record" %%ida3it Com$laint as ,ell as t)e -ssailed Resolutions ,ill )a3e no le+ to stand on and t)e c)ar+es a+ainst Petitioner ,ould )a3e been dismissed %or bein+ bere%t o% le+al and %actual merit. 2t is clear t)at Public Res$ondent )as c)osen not to $er%orm its $ositi3e dut# reDuired b# la," and )ence" committed +ra3e abuse o% discretion. :22.97 0ore im$ortantl#" t)e Public Res$ondent )as t)e $ositi3e dut# to exercise its 3ast $o,ers o% $rosecution 4udiciousl#" and ma*e certain t)at it insulates t)e State %rom %ri3olous $rosecutions" and s$are $etitioner %rom t)e needless ex$ense" ri+ors" anxiet#" $ublic )umiliation" $olitical )arassment" and $ersecution o% t)e baseless and unsubstantial -%%ida3it Com$laint and -ssailed Resolutions -s t)is >onorable Court en banc reminded t)e Public Res$ondent in ,strada v. Desierto&41

E'

E6 E;

Ru%ina Patis Factor#" et al. 3. -lusitain" G.R. No. 'C6676" 'C 5ul# 677C" C;C SCR- C'E" C6E= em$)asis su$$lied. Ibid. G.R. Nos. 'C69'7-'5 and 'C69;E" 0arc) 6" 677'" ;5; SCR- C56" at 5;7= em$)asis and underscorin+ su$$lied.

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2t is t)e sacred dut# o% t)e res$ondent 8xxxx to balance t)e ri+)t o% t)e State to $rosecute t)e +uilt# and t)e ri+)t o% an accused to a %air in3esti+ation and trial ,)ic) )as been cate+oriGed as t)e Qmost %undamental o% all %reedoms.Q (o be sure" t)e dut# o% a $rosecutor is more to do 4ustice and less to $rosecute. H3s 3s 51e 8;63>"538n 58 3nsure 51"5 51e 9re6343n"r# 3nves53>"538n 8: 51e 9e53538ner s1"66 1"ve " 73r7us-:ree "548s91ere. >e )as to $ro3ide t)e restraint a+ainst ,)at Aord 1r#ce calls Qt)e im$atient 3e)emence o% t)e ma4orit#.Q

:22.9' 2ndeed JtK)ere is no Duestion on t)e need to %erret out and ex$el $ublic o%%icers ,)ose acts ma*e bureaucrac# s#non#mous ,it) +ra%t in t)e $ublic e#e" and to eliminate s#stems o% +o3ernment acDuisition $rocedures ,)ic) co3ertl# ease corru$t $ractices. 1ut t)e remed# is not to indict and 4ail e3er# $erson ,)o )a$$ens to )a3e si+ned a $iece o% document or )ad a )and in im$lementin+ routine +o3ernment $rocurement" nor does t)e solution %ester in t)e indiscriminate use o% t)e cons$irac# t)eor# ,)ic) ma# s,ee$ into 4ail e3en t)e most innocent ones. (o sa# t)e least" t)is res$onse is excessi3e and ,ould sim$l# en+ender catastro$)ic conseDuencesP!EC :22.96 ()e Public Res$ondentBs deliberate re%usal to dismiss t)e %ri3olous c)ar+es a+ainst $etitioner" ,)ic) is clearl# $oliticall# moti3ated and bere%t o% %actual and le+al merit" is certainl# t)e 3er# same circus! t)is >onorable Court en banc ,arned a+ainst in ,strada v. Desierto. :22.9; For t)ese reasons" Petitioner im$lores t)e su$reme aut)orit# o% t)is >onorable Court to abate t)e Public Res$ondentBs ille+al and re$re)ensible acts t)rou+) t)e extraordinar# remed# o% certiorari.

PRA/ER
F>.R.FOR." Petitioner XXXXX res$ect%ull# $ra#s t)at t)is >onorable Court +i3e due course to t)is Petition %or Certiorari and render 4ud+ment as %ollo,s& (') (6) 2SS/. a Frit o% Certiorari -NN/AA2NG" R.:.RS2NG and S.((2NG -S2@. t)e Resolutions dated '' 5anuar# 67'' and '9 Februar# 67'6 issued b# t)e 8xxxx" and in lieu t)ereo%" 2SS/. an OR@.R @20S2SS2NG t)e all t)e c)ar+es a+ainst t)e Petitioner.

Petitioner $ra#s %or suc) ot)er or %urt)er relie% as ma# be deemed 4ust and eDuitable under t)e $remises. (a+ui+ Cit# %or 0anila" 65 0a# 67'6. A-FO.R

!eri ication and Certi ication o "on#$orum %&opping $ollo's Co$# %urnis)ed&
EC

SistoGa 3. @esierto" G.R. No. 'CC9EC" ; Se$tember 6776" __ SCR- __" __.

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8888 8888 8888 EXPLANATION FOR SER'ICE B/ RE(ISTERED MAIL 2n com$liance ,it) Rule ';" Section '' o% t)e Rules o% Court" undersi+ned counsel" res$ect%ull# mani%ests t)at t)e %ore+oin+ PETITION FOR CERTIORARI is bein+ ser3ed b# re+istered mail on t)e $arties" because o% time and distance constraints and t)e tem$orar# una3ailabilit# o% o%%ice messen+ers ,)ic) render $ersonal ser3ice im$racticable. LA)/ER

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