The Supreme Court affirmed the Sandiganbayan’s decision, finding a municipal mayor guilty of technical malversation for diverting food intended for malnourished children to beneficiaries of a reconstruction project. This case underscores that good faith is not a valid defense in technical malversation, as the crime is mala prohibita, focusing on the act itself rather than the intent behind it. The ruling emphasizes the importance of adhering strictly to the designated purpose of public funds, regardless of the perceived nobility of the alternative use, reinforcing accountability among public officials.

When Helping Hurts: Can a Mayor’s Good Intentions Excuse Misuse of Public Funds?

The case of Arnold James M. Ysidoro v. People of the Philippines revolves around the actions of a municipal mayor who reallocated resources intended for a specific public program to another. The central question is whether such reallocation, even if done with good intentions and for another public purpose, constitutes a violation of Article 220 of the Revised Penal Code, which penalizes technical malversation.

The facts of the case are straightforward. Arnold James M. Ysidoro, the Municipal Mayor of Leyte, approved the release of four sacks of rice and two boxes of sardines from the municipality’s Supplemental Feeding Program (SFP) to beneficiaries of the Core Shelter Assistance Program (CSAP). The CSAP provided construction materials to indigent calamity victims for rebuilding their homes, but the beneficiaries had stopped working due to a lack of food. To prevent the loss of construction materials, the mayor approved the diversion of the food, believing it would address the immediate need and ensure the project’s continuation.

However, this decision led to a complaint being filed against Ysidoro for technical malversation. The prosecution argued that the SFP goods were specifically intended for malnourished children in Leyte, as outlined in the Supplemental Feeding Implementation Guidelines for Local Government Units. Diverting these goods to CSAP beneficiaries, regardless of their need, constituted a violation of the law.

The defense presented several arguments. Ysidoro claimed that the diverted goods came from the savings of the SFP and the Calamity Fund. He also asserted that he acted in good faith, believing that the municipality’s poor CSAP beneficiaries were in urgent need of food. Additionally, Ysidoro pointed out that a comprehensive audit of the municipality in 2001 found no irregularities in its transactions.

The Sandiganbayan, however, found Ysidoro guilty beyond reasonable doubt of technical malversation. The court fined him P1,698.00, representing 50% of the misapplied sum, acknowledging that his actions caused no damage or embarrassment to public service. The Sandiganbayan reasoned that Ysidoro had applied public property to a public purpose other than that for which it had been appropriated by law or ordinance. This decision was subsequently appealed to the Supreme Court.

The Supreme Court identified three essential elements of technical malversation under Article 220 of the Revised Penal Code. These are: (a) that the offender is an accountable public officer; (b) that he applies public funds or property under his administration to some public use; and (c) that the public use for which such funds or property were applied is different from the purpose for which they were originally appropriated by law or ordinance. Here the court points to:

Art. 220. Illegal use of public funds or property. — Any public officer who shall apply any public fund or property under his administration to any public use other than for which such fund or property were appropriated by law or ordinance shall suffer the penalty of prision correccional in its minimum period or a fine ranging from one-half to the total of the sum misapplied, if by reason of such misapplication, any damages or embarrassment shall have resulted to the public service. In either case, the offender shall also suffer the penalty of temporary special disqualification.

Ysidoro argued that the goods were not specifically appropriated by law or ordinance for a particular purpose, but the Court found that Resolution 00-133 enacted by the Sangguniang Bayan of Leyte appropriated the annual general fund for 2001. This appropriation was based on the executive budget, which allocated separate funds for the SFP and the Comprehensive and Integrated Delivery of Social Services (CIDSS), which covered the CSAP housing projects. The allocation of separate funds indicated a clear intention to differentiate between the two programs.

The Supreme Court emphasized that the SFP had specific guidelines for identifying qualified beneficiaries, primarily malnourished children aged 36 to 72 months and families with a total monthly income below P3,675.00. By distributing the goods to individuals providing labor for housing reconstruction, Ysidoro disregarded these guidelines. The Court noted that if Ysidoro could not legally distribute construction materials appropriated for CSAP to SFP clients, neither could he distribute food intended for the latter to CSAP beneficiaries.

Ysidoro also argued that the subject goods constituted savings of the SFP and could be diverted to the CSAP beneficiaries, citing Abdulla v. People. However, the Court rejected this argument, stating that the SFP was a continuing program throughout the year, and it was premature to conclude in mid-June 2001 that the program had finished its project and had unneeded savings. The court emphasized that the needs of hungry mouths are hard to predict precisely, and the remaining food items could not be considered savings.

Furthermore, the Local Government Code requires an ordinance to be enacted to validly apply funds, already appropriated for a determined public purpose, to some other purpose. Section 336 of the Local Government Code states:

SEC. 336. Use of Appropriated Funds and Savings. – Funds shall be available exclusively for the specific purpose for which they have been appropriated. No ordinance shall be passed authorizing any transfer of appropriations from one item to another. However, the local chief executive or the presiding officer of the sanggunian concerned may, by ordinance, be authorized to augment any item in the approved annual budget for their respective offices from savings in other items within the same expense class of their respective appropriations.

This provision underscores that the power of the purse resides in the local legislative body, requiring an ordinance for the Sanggunian to determine whether savings have accrued and to authorize the augmentation of other budget items with those savings.

Ysidoro also argued that the municipal auditor found nothing irregular in the diversion of the goods, and this finding should be respected. However, the Supreme Court ruled that Ysidoro’s failure to present the municipal auditor at trial did not necessarily imply that the auditor’s testimony would have been adverse. The Court clarified that the auditor’s view was not conclusive and would not negate Ysidoro’s liability if the diversion was indeed unlawful.

Finally, Ysidoro contended that he acted in good faith, as the idea of using the SFP goods for CSAP beneficiaries came from others, and he consulted the accounting department before approving the distribution. He argued that without criminal intent, he could not be convicted of the crime. The Supreme Court, however, emphasized that criminal intent is not an element of technical malversation. The Court noted:

The law punishes the act of diverting public property earmarked by law or ordinance for a particular public purpose to another public purpose. The offense is mala prohibita, meaning that the prohibited act is not inherently immoral but becomes a criminal offense because positive law forbids its commission based on considerations of public policy, order, and convenience. It is the commission of an act as defined by the law, and not the character or effect thereof, that determines whether or not the provision has been violated. Hence, malice or criminal intent is completely irrelevant.

The Supreme Court affirmed the Sandiganbayan’s decision, holding that Ysidoro’s actions, despite his good intentions, constituted technical malversation. The Court recognized that the offense was not grave, warranting only a fine. This ruling underscores the strict liability imposed on public officials in managing public funds and property, regardless of their motives.

FAQs

What is technical malversation?	Technical malversation, as defined in Article 220 of the Revised Penal Code, occurs when a public officer applies public funds or property to a public use different from the one for which it was originally appropriated by law or ordinance.
Is good faith a valid defense in technical malversation?	No, good faith is not a valid defense. Technical malversation is considered mala prohibita, meaning the act itself is prohibited by law regardless of the intent behind it.
What was the key issue in the Ysidoro case?	The key issue was whether Mayor Ysidoro committed technical malversation by diverting food intended for malnourished children to beneficiaries of a housing reconstruction project.
What was the Supreme Court’s ruling?	The Supreme Court affirmed the Sandiganbayan’s decision, finding Ysidoro guilty of technical malversation, emphasizing that the diversion of funds, regardless of intent, violated Article 220 of the Revised Penal Code.
What is required to divert public funds legally?	The Local Government Code requires an ordinance enacted by the local legislative body (Sanggunian) to validly apply funds already appropriated for a determined public purpose to some other purpose.
What was the penalty imposed on Mayor Ysidoro?	Since his action caused no damage or embarrassment to public service, Mayor Ysidoro was fined P1,698.00, which is 50% of the sum misapplied.
What is the significance of this case?	The case reinforces the strict liability imposed on public officials in managing public funds and property, highlighting the importance of adhering to the designated purpose of those funds, regardless of the perceived nobility of alternative uses.
What does "mala prohibita" mean?	Mala prohibita refers to acts that are not inherently immoral but are prohibited by law for reasons of public policy, order, and convenience.

In conclusion, the Ysidoro case serves as a crucial reminder to public officials of their responsibility to manage public funds strictly according to their designated purposes. While intentions may be noble, the law mandates adherence to proper procedures and legal frameworks in allocating resources. This ruling emphasizes accountability and transparency in public service.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Arnold James M. Ysidoro v. People, G.R. No. 192330, November 14, 2012