In a ruling concerning the Statement of Assets, Liabilities, and Net Worth (SALN) obligations of public officials, the Supreme Court clarified the extent of asset disclosure and the boundaries of prosecutorial discretion. The Court emphasized that while public officials must accurately declare their assets to deter corruption, omissions due to misinterpretations of legal effects, rather than malicious intent, do not automatically warrant prosecution. This decision highlights the balance between ensuring transparency and protecting officials from unfounded accusations, offering a nuanced perspective on SALN compliance and enforcement.

Unexplained Wealth or Misunderstood Obligations? The Bariata vs. Ombudsman Case

The case of Crispin Burgos D. Bariata against the Honorable Ombudsman Conchita C. Carpio-Morales, Joselito A. Ojeda, and Dulce R. Quinto-Ojeda revolves around allegations that then-Mayor Joselito Ojeda failed to accurately declare his assets and net worth in his SALNs from 2010 to 2013. Bariata accused Ojeda of not including several properties and business interests in his SALNs, leading to criminal and administrative charges. The Ombudsman dismissed the complaints, finding insufficient evidence of unexplained wealth or malicious intent to conceal information, which prompted Bariata to seek recourse before the Supreme Court.

At the heart of the matter is the constitutional and statutory requirement for public officials to file truthful and detailed SALNs. Section 17, Article XI of the Constitution mandates this, stating, “[a] public officer or employee shall, upon assumption of office and as often thereafter as may be required by law, submit a declaration under oath of his [or her] assets, liabilities, and net worth.” Echoing this, Section 8 of Republic Act No. 6713, the Code of Conduct and Ethical Standards for Public Officials and Employees, reinforces the obligation to disclose assets, liabilities, and financial interests, including those of spouses and unmarried children under eighteen living in their households.

Bariata’s complaint hinged on several specific allegations, including the non-declaration of certain parcels of land in Lucena City and shares in Katigbak Enterprises. Ojeda countered that some properties were already under custodia legis due to a writ of execution in favor of Bank of the Philippine Islands (BPI), and others had been sold or transferred before the SALN years in question. The Court had to determine whether these justifications were sufficient to excuse the non-disclosure or whether they indicated a deliberate attempt to conceal assets.

A significant point of contention was the properties covered by Transfer Certificates of Title (TCT) Nos. T-57936, T-65839, T-84285, and T-82483. While registered in Ojeda’s name, he argued that they were levied upon in favor of BPI as early as 2005, placing them under custodia legis. Bariata contended that ownership remained with Ojeda until a sale on execution occurred. The Court sided with Bariata on this point, clarifying that a levy on execution merely creates a lien in favor of the creditor but does not transfer ownership until the property is sold and the redemption period expires.

“Levy means the essential act or acts by which an officer sets apart or appropriates a part or the whole of the property of the judgment debtor for purposes of the prospective execution sale.”

Building on this principle, the Court emphasized that Ojeda’s continued payment of real property taxes on these properties further indicated his ongoing interest and responsibility to declare them. Therefore, the non-declaration of these properties in the SALNs was deemed a misstep.

However, the Court differentiated this situation from another parcel of land covered by TCT No. 115895. Ojeda presented a Deed of Absolute Sale from 2005, showing that he had sold the property to Belinda Seibold. The Court acknowledged that under Article 1498 of the Civil Code, the execution of a public instrument is equivalent to delivery, effectively transferring ownership to Seibold. Consequently, Ojeda was justified in not including this property in his SALNs, because the transfer of ownership by virtue of Deed of Absolute Sale is considered a constructive delivery of the property. Article 1498 of the Civil Code states:

“When the sale is made through a public instrument, the execution thereof shall be equivalent to the delivery of the thing which is the object of the contract, if from the deed the contrary does not appear or cannot clearly be inferred.”

This approach contrasts with the properties under levy, where ownership had not yet been transferred, highlighting the importance of distinguishing between a lien and a completed transfer of ownership.

Another critical aspect of the case involved a parcel of land in Tayabas City covered by TCT No. 343418, co-owned by Ojeda’s wife and her brother, Apolinar Quinto. Ojeda argued that his wife had executed a Waiver/Quitclaim with Assignment of Rights in favor of her brother in 2002. The Court examined whether this waiver effectively removed the property from Ojeda’s SALN obligations. Citing relevant jurisprudence, the Court determined that the Waiver/Quitclaim was, in effect, a donation of Dulce’s interest in the property to her brother, Apolinar.

To be valid, a donation of immovable property must be made via public document and accepted by the donee. Moreover, the intention to donate must be clear. In this case, there was a clear and unequivocal intent to waive rights, with the Waiver/Quitclaim contained in a public document, and was duly accepted by Apolinar Quinto. While the character of the property as paraphernal or conjugal was not established, the Court found that Ojeda had sufficient basis to exclude the property from his SALN, given his wife’s waiver and effective transfer of ownership to her brother.

Regarding Ojeda’s alleged continued interest in Katigbak Enterprises, the Court found insufficient evidence to prove that he retained shares or interests during the years 2010 to 2013. While his signature appeared on the 2014 Annual Financial Statements (AFS), the Court noted that this could be attributed to his holding a position in a holdover capacity, as the corporation had not convened a shareholders meeting for several years.

The Supreme Court ultimately concluded that while Ojeda had erred in not declaring the properties subject to the levy on execution, this omission was not indicative of malicious intent to conceal wealth. The Court highlighted that these properties were acquired before Ojeda assumed office and that there was no evidence of “unexplained wealth” accumulated during his tenure. The primary objective of SALN disclosure is to prevent the accumulation of ill-gotten wealth during public service, and in this case, there was no indication that Ojeda had violated this principle.

Therefore, the Supreme Court denied Bariata’s petition, affirming the Ombudsman’s dismissal of the criminal complaint. The Court emphasized that its decision was rooted in the absence of grave abuse of discretion on the part of the Ombudsman, recognizing the wide latitude afforded to the Ombudsman in determining probable cause. This case serves as an important reminder that while SALN compliance is crucial, prosecutorial discretion must be exercised judiciously, considering the totality of circumstances and the intent behind any omissions.

FAQs

What was the key issue in this case?	The key issue was whether Mayor Joselito Ojeda’s failure to declare certain properties in his SALNs constituted a violation of anti-graft laws, warranting criminal prosecution. The court had to determine if the omissions were due to malicious intent or a misunderstanding of legal obligations.
What is a Statement of Assets, Liabilities, and Net Worth (SALN)?	A SALN is a declaration under oath of a public official’s assets, liabilities, and net worth, required by the Constitution and Republic Act No. 6713. It serves as a tool to promote transparency and prevent corruption by disclosing any unexplained accumulation of wealth.
What is the effect of a levy on execution on property ownership?	A levy on execution creates a lien in favor of the judgment creditor but does not transfer ownership. The judgment debtor retains ownership until the property is sold on execution and the redemption period expires.
When is ownership transferred in a contract of sale of real property?	Ownership is transferred upon delivery of the thing sold, which in the case of real property, is effected when the instrument of sale is executed in a public document. The transfer of ownership is distinct from the transfer of the certificate of title.
What are the elements of a valid donation of real property?	The elements are: (a) reduction of the donor’s patrimony; (b) increase in the donee’s patrimony; (c) intent to do an act of liberality; (d) the donation must be in a public document; and (e) acceptance by the donee in the same deed or a separate public instrument.
What does ‘unexplained wealth’ mean in the context of SALN laws?	‘Unexplained wealth’ refers to the accumulation of property and/or money manifestly out of proportion to a public official’s salary and other lawful income. The law seeks to curtail the acquisition of such wealth during the official’s tenure in public office.
What is the significance of ‘animus donandi’ in a waiver or quitclaim?	‘Animus donandi’ refers to the intent to donate, which is a crucial element in determining whether a waiver or quitclaim can be considered a donation. The intention to donate must be clear and unequivocal.
What is the role of the Ombudsman in SALN cases?	The Ombudsman has the power to investigate acts or omissions of public officials that appear to be illegal, unjust, improper, or inefficient. The Ombudsman determines whether probable cause exists to file criminal or administrative charges related to SALN violations.

In conclusion, the Supreme Court’s decision underscores the delicate balance between promoting transparency in public service and safeguarding public officials from unsubstantiated accusations. While the accurate and timely filing of SALNs remains a critical obligation, the Court recognizes that errors stemming from genuine misinterpretations, rather than malicious intent, should not automatically lead to criminal prosecution. This ruling emphasizes the importance of prosecutorial discretion and the need to consider the totality of circumstances in each case.

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: Crispin Burgos D. Bariata v. The Honorable Ombudsman Conchita C. Carpio-Morales, et al., G.R. No. 234640, February 01, 2023