When Can the Sandiganbayan Try a Mayor? Salary Grade 27 Threshold Explained

TLDR: This Supreme Court case clarifies that the Sandiganbayan has jurisdiction over municipal mayors classified under Salary Grade 27, regardless of their actual received salary. It emphasizes that official position classification, not actual pay, determines Sandiganbayan jurisdiction in anti-graft cases. Mayors and other local officials must be aware of this jurisdictional rule and the mandatory suspension upon indictment for relevant offenses.

MAYOR CELIA T. LAYUS, M.D., PETITIONER, VS. SANDIGANBAYAN, AND THE PEOPLE OF THE PHILIPPINES, RESPONDENTS. G.R. No. 134272, December 08, 1999

INTRODUCTION

Imagine a local mayor, dedicated to her small town, suddenly facing charges in the Sandiganbayan, a special court for high-ranking officials. This was the reality for Mayor Celia T. Layus of Claveria, Cagayan. Her case, questioning the Sandiganbayan’s jurisdiction, reached the Supreme Court and became a crucial precedent. At the heart of the issue: does the Sandiganbayan’s jurisdiction over local officials hinge on their actual salary, or their position’s designated salary grade? This case dives into the complexities of anti-graft law and the specific salary grade threshold that determines which court handles cases against local government executives.

Mayor Layus was charged with estafa through falsification of public documents. She argued that as a mayor of a fifth-class municipality, her actual salary placed her below the Salary Grade 27 threshold, which she believed was the minimum for Sandiganbayan jurisdiction. The Supreme Court, however, had to determine whether the Sandiganbayan correctly assumed jurisdiction and if the subsequent suspension order was valid. This case highlights the critical intersection of local governance, anti-corruption laws, and the precise definition of jurisdiction in the Philippine legal system.

LEGAL CONTEXT: SANDIGANBAYAN JURISDICTION AND SALARY GRADE 27

The Sandiganbayan, established to combat corruption among public officials, has specific jurisdictional limits. Republic Act No. 7975, which amended Presidential Decree No. 1606, defines the Sandiganbayan’s jurisdiction. Crucially, Section 4(a)(5) of R.A. No. 7975 extends Sandiganbayan jurisdiction to:

“(5) All other national and local officials classified as Grade 27 and higher under the Compensation and Position Classification Act of 1989 [Republic Act No. 6758].”

This provision links Sandiganbayan jurisdiction to Salary Grade 27 and above, as defined by Republic Act No. 6758, also known as the Compensation and Position Classification Act of 1989. R.A. No. 6758 standardized the salary system for government employees, establishing salary grades based on position and responsibilities. The Department of Budget and Management (DBM) was tasked with creating the Index of Occupational Services, Position Titles and Salary Grades, effectively classifying government positions. It is important to note that Section 444(d) of the Local Government Code (Republic Act No. 7160) prescribes that:

“(d) Municipal Mayors shall receive a minimum monthly compensation corresponding to Salary Grade Twenty-Seven (27) as prescribed under Republic Act Numbered Sixty-seven hundred and fifty-eight and the implementing guidelines issued pursuant thereto.”

This legal framework sets the stage for the central question in Mayor Layus’s case: Does the actual salary received, potentially lower due to the municipality’s financial capacity, override the position’s official Salary Grade 27 classification for jurisdictional purposes? Understanding these laws is essential to determining which court has the authority to try cases against local officials accused of graft and corruption.

CASE BREAKDOWN: LAYUS VS. SANDIGANBAYAN – JURISDICTIONAL BATTLE

The case began with a complaint filed against Mayor Layus for estafa through falsification of public documents and violations of the Anti-Graft and Corrupt Practices Act. After a preliminary investigation by the Ombudsman, an information was filed against Mayor Layus in the Sandiganbayan. Mayor Layus contested the Sandiganbayan’s jurisdiction, arguing that her actual monthly salary of P11,441 placed her at Salary Grade 25, below the jurisdictional threshold of SG 27. She asserted that Section 444(d) of the Local Government Code merely set a *minimum* compensation, not a definitive classification for jurisdictional purposes, especially considering the financial realities of fifth-class municipalities.

Despite her jurisdictional challenge, the Sandiganbayan proceeded with the case. Mayor Layus was arrested, posted bail, and even entered a conditional plea of not guilty to accommodate a travel schedule, explicitly reserving her right to question jurisdiction and reinvestigation. Her motions for reinvestigation and to quash the information were denied by the Sandiganbayan. Subsequently, the Sandiganbayan granted the prosecution’s motion to suspend Mayor Layus pendente lite (pending litigation).

Undeterred, Mayor Layus elevated the jurisdictional issue to the Supreme Court via a petition for certiorari and prohibition. She argued three main points:

1. The Sandiganbayan lacked jurisdiction over her because her actual salary was below Salary Grade 27.
2. The Sandiganbayan erred in denying her motion for reinvestigation.
3. The 90-day suspension pendente lite was erroneous.

The Supreme Court, however, sided with the Sandiganbayan. The Court emphasized the precedent set in Rodrigo v. Sandiganbayan, which established that municipal mayors, regardless of municipality class, fall under Sandiganbayan jurisdiction due to their position being classified as Salary Grade 27. The Supreme Court stated:

“Municipal mayors are assigned SG 27 in its two editions of 1989 and 1997 [of the Index of Occupational Services, Position Titles and Salary Grades].”

The Court clarified that the actual salary received by Mayor Layus was irrelevant for jurisdictional purposes. The operative factor was her position’s classification, not the municipality’s financial capacity to pay the full SG 27 rate. The Supreme Court reasoned:

“The fact that LAYUS is getting an amount less than that prescribed for SG 27 is entirely irrelevant for purposes of determining the jurisdiction of the Sandiganbayan.”

Regarding the motion for reinvestigation, the Supreme Court found that Mayor Layus was afforded due process, having filed numerous pleadings and been represented by counsel. The Court also upheld the 90-day suspension pendente lite, citing Section 13 of R.A. No. 3019, which mandates suspension for public officials charged under valid information for graft-related offenses. The Supreme Court ultimately dismissed Mayor Layus’s petition, affirming the Sandiganbayan’s jurisdiction and the validity of the suspension order.

PRACTICAL IMPLICATIONS: WHAT DOES THIS MEAN FOR LOCAL OFFICIALS?

The Layus vs. Sandiganbayan case provides critical clarity on the jurisdiction of the Sandiganbayan over local officials. The ruling firmly establishes that jurisdiction is determined by the official Salary Grade classification of the position, not the actual salary received by the incumbent. This has significant implications for mayors, vice-mayors, and other local government executives, particularly in lower-income municipalities.

For local officials, this case serves as a stark reminder that even if their municipality’s financial constraints lead to a lower actual salary, their position’s classification under Salary Grade 27 or higher automatically places them under the Sandiganbayan’s jurisdiction for graft and corruption cases. They cannot argue lack of Sandiganbayan jurisdiction based solely on receiving a salary below the full SG 27 rate.

Furthermore, the case reinforces the mandatory nature of suspension pendente lite under Section 13 of R.A. No. 3019. Once a valid information is filed in the Sandiganbayan for graft-related offenses, suspension is almost automatic, intended to prevent potential abuse of office during the trial period. Local officials facing such charges must understand the inevitability of suspension and prepare for its consequences.

Key Lessons from Layus vs. Sandiganbayan:

• Jurisdiction by Position, Not Pay: Sandiganbayan jurisdiction over local officials is based on the position’s Salary Grade classification (SG 27 and above), not the actual salary received.
• Mandatory Suspension: Suspension pendente lite is mandatory upon indictment for graft-related offenses in the Sandiganbayan.
• Due Process Afforded: Even with procedural challenges, the courts prioritize ensuring due process for the accused, focusing on the opportunity to be heard and present a defense.

FREQUENTLY ASKED QUESTIONS (FAQs)

Q: Does this case mean all mayors are under Sandiganbayan jurisdiction?
A: Generally, yes. Section 444(d) of the Local Government Code sets the minimum salary grade for Municipal Mayors at SG 27, placing them under Sandiganbayan jurisdiction as per R.A. 7975. City Mayors, typically holding higher salary grades, also fall under Sandiganbayan jurisdiction.

Q: What is Salary Grade 27, and why is it important?
A: Salary Grade 27 is a classification in the Philippine government’s compensation system. It signifies a certain level of responsibility and authority. R.A. 7975 uses SG 27 as a key threshold to delineate Sandiganbayan jurisdiction, targeting higher-ranking officials in anti-corruption efforts.

Q: If a mayor’s municipality is poor and they receive a lower salary than SG 27 prescribes, are they still under Sandiganbayan jurisdiction?
A: Yes. This case clarifies that actual received salary due to municipal financial constraints does not negate Sandiganbayan jurisdiction. The position of Mayor is classified at SG 27, regardless of the municipality’s financial capacity to pay the full rate.

Q: What is suspension pendente lite, and why is it mandatory?
A: Suspension pendente lite means suspension during litigation. In anti-graft cases, it’s a mandatory preventive measure to ensure public officials facing charges cannot use their office to obstruct justice or commit further offenses while the case is ongoing. It is not a punishment but a temporary measure.

Q: Can a local official avoid suspension if charged in the Sandiganbayan?
A: Avoiding suspension is very difficult once a valid information is filed. The suspension is considered mandatory under R.A. 3019. The focus shifts to ensuring due process and a fair trial, not preventing the suspension itself.

Q: What should local officials do to avoid Sandiganbayan cases?
A: Uphold the highest standards of transparency and accountability in governance. Strictly adhere to procurement laws, financial regulations, and ethical conduct. Seek legal counsel proactively to ensure compliance and mitigate risks of graft charges.

Q: Where can I find the official Salary Grade classifications for local government positions?
A: The Department of Budget and Management (DBM) is the primary source. You can refer to DBM issuances, circulars, and the Index of Occupational Services, Position Titles and Salary Grades, which are periodically updated.

Q: Is a COA report necessary before filing a case with the Sandiganbayan?
A: No. While COA reports can be evidence, they are not a prerequisite for the Ombudsman to investigate and file cases with the Sandiganbayan. The Ombudsman has independent investigatory and prosecutorial powers.

Q: What happens if a suspended official is eventually acquitted?
A: If acquitted, the official is reinstated to their position and is entitled to back salaries for the period of suspension. However, the suspension period itself is still served, even if ultimately exonerated.

Q: How long can a suspension pendente lite last?
A: While R.A. 3019 doesn’t specify a duration, jurisprudence and related laws like the Administrative Code of 1987 generally limit preventive suspension to a maximum of 90 days. However, the case itself can proceed for a longer period.

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