In Jovito C. Plameras v. People of the Philippines, the Supreme Court affirmed the Sandiganbayan’s decision convicting a former Governor of Antique for violating Section 3(e) of Republic Act No. 3019, also known as the Anti-Graft and Corrupt Practices Act. The Governor was found guilty of causing undue injury to the government and giving unwarranted benefits to a private party through manifest partiality and evident bad faith in a school desk procurement program. This ruling underscores the importance of adhering to procurement regulations and acting in good faith when managing public funds, reinforcing the accountability of public officials in ensuring transparency and preventing corruption.

Did a Governor’s Signature Lead to Undelivered Desks and a Graft Conviction?

This case arose from the implementation of the “Purchase of School Desks Program” initiated by the Department of Education, Culture and Sports (DECS) Central Office. The Province of Antique, under Governor Jovito C. Plameras, was a beneficiary with a budget allocation of P5,666,667.00. In 1997, Plameras received two checks from DECS-PAF for the purchase of school desks and armchairs. Subsequently, he signed a Purchaser-Seller Agreement with CKL Enterprises, represented by Jesusa T. Dela Cruz, for the supply and delivery of monoblock grader’s desks. An Irrevocable Domestic Letter of Credit was opened with Land Bank of the Philippines (LBP) in favor of CKL Enterprises/Dela Cruz.

However, the critical point of contention arose when Plameras signed Sales Invoice No. 0220 and accepted LBP Draft No. DB97121, attesting to the receipt of 1,354 grader’s desks and 5,246 tablet armchairs in good order and condition, valued at P5,666,600.00. It was later discovered that CKL had only delivered a portion of the desks and armchairs. Despite this, the LBP fully negotiated the letter of credit, remitting the entire amount to CKL Enterprises/Dela Cruz, charging the Provincial School Board/Governor Jovito Plameras, Jr. of Antique. This discrepancy led to a criminal complaint against Plameras for Violation of Section 3(e) of R.A. No. 3019.

Section 3(e) of Republic Act 3019 states:

Section 3. Corrupt practices of public officers. – In addition to acts or omissions of public officers already penalized by existing law, the following shall constitute corrupt practices of any public officer and are hereby declared to be unlawful:

x x x x

(e) Causing any undue injury to any party, including the Government, or giving any private party any unwarranted benefits, advantage or preference in the discharge of his official administrative or judicial functions through manifest partiality, evident bad faith or gross inexcusable negligence. This provision shall apply to officers and employees of offices or government corporations charged with the grant of licenses or permits or other concessions.

The Sandiganbayan found Plameras guilty, citing his manifest partiality and evident bad faith in disbursing public funds without ensuring proper delivery of the school desks and armchairs. The Supreme Court upheld this decision. The Court emphasized that the elements of Section 3(e) of R.A. No. 3019 were met, as Plameras, a public officer, acted with manifest partiality, evident bad faith, or gross inexcusable negligence, causing undue injury to the government and giving unwarranted benefits to a private party. This underscores the importance of stringent oversight and adherence to procurement rules by public officials.

The modes by which the crime can be committed are through manifest partiality, evident bad faith, or gross inexcusable negligence. “Manifest partiality” exists when there is a clear inclination to favor one side. “Evident bad faith” connotes a palpably fraudulent and dishonest purpose or moral obliquity. “Gross inexcusable negligence” refers to negligence characterized by the want of even the slightest care, acting or omitting to act willfully and intentionally, with conscious indifference to consequences.

The Supreme Court, in affirming the Sandiganbayan’s decision, highlighted several key points. First, Plameras knowingly sidestepped and ignored established rules, regulations, and policies of the Commission on Audit (COA), as well as those mandated under the Local Government Code of 1991 (R.A. No. 7160). Second, these actions enabled CKL Enterprises/Dela Cruz to receive full payment for the school desks and armchairs despite their non-delivery. Third, any procurement or acquisition of supplies by local government units must be through competitive public bidding.

The Court further noted that Plameras admitted awareness of the public bidding requirement. However, he proceeded based on the alleged advice of an unnamed DECS representative about a negotiated contract, without any verification. This was deemed a willful belief without any due diligence on his part. As a Governor, it was his duty to act with circumspection to protect government funds, and failure to do so constituted at least gross inexcusable negligence. Additionally, the act of signing the sales invoice and the bank draft, knowing that such documents would cause the withdrawal by CKL Enterprises/Dela Cruz of the corresponding amount covered by the Irrevocable Domestic Letter of Credit, was a critical factor.

A Letter of Credit is a promise to pay. However, the problem arises when the funds are withdrawn irregularly. Any withdrawal from LBP must be accompanied by appropriate documents evidencing deliveries. By signing the draft and sales invoice, Plameras enabled CKL Enterprises/Dela Cruz to withdraw the entire amount without any delivery of the items. The CKL Enterprises Invoice dated 16 April 1997, contained Plameras’ signature as the customer. Above the signature was the phrase: “Received and accepted the above items in good condition.” This signature initiated the process of releasing payment to the seller. Consequently, the LBP released the money, but delivery was made almost a year later on a piecemeal basis, with some items being defective. Therefore, the Supreme Court was not persuaded to exonerate Plameras. The evidence of undue injury to the Province of Antique and the unwarranted benefit given to CKL Enterprises/Dela Cruz through gross inexcusable negligence was proven beyond reasonable doubt.

FAQs

What was the key issue in this case?	The key issue was whether Governor Plameras violated Section 3(e) of R.A. No. 3019 by causing undue injury to the government and giving unwarranted benefits to a private party in a school desk procurement program.
What is Section 3(e) of R.A. No. 3019?	Section 3(e) of R.A. No. 3019 prohibits public officers from causing undue injury to any party, including the government, or giving any private party unwarranted benefits through manifest partiality, evident bad faith, or gross inexcusable negligence.
What were the specific actions that led to the conviction?	The specific actions included signing a sales invoice and accepting a bank draft attesting to the receipt of school desks and armchairs when a significant portion had not been delivered, enabling the supplier to receive full payment without fulfilling their obligations.
What is “manifest partiality”?	“Manifest partiality” refers to a clear, notorious, or plain inclination or predilection to favor one side or person rather than another.
What is “evident bad faith”?	“Evident bad faith” connotes not only bad judgment but also a palpably and patently fraudulent and dishonest purpose to do moral obliquity or conscious wrongdoing for some perverse motive or ill will.
What is “gross inexcusable negligence”?	“Gross inexcusable negligence” refers to negligence characterized by the want of even the slightest care, acting or omitting to act in a situation where there is a duty to act, not inadvertently but willfully and intentionally, with conscious indifference to consequences.
Why was the argument that Plameras relied on DECS representative’s advice rejected?	The court found that Plameras, as Governor, had a duty to act with circumspection to protect government funds and could not blindly rely on the advice of a DECS representative without proper verification and due diligence.
What is the significance of the public bidding requirement?	The public bidding requirement ensures transparency and fair competition in government procurement, preventing corruption and ensuring that the government obtains the best value for its money.

The Plameras vs. People case serves as a stern reminder to public officials about the critical importance of integrity, transparency, and adherence to procurement laws in the management of public funds. By upholding the conviction, the Supreme Court reinforced the principle that public office demands accountability and that any deviation from established rules and regulations will be met with appropriate legal consequences.

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: Jovito C. Plameras, Petitioner, vs. People of the Philippines, Respondent., G.R. No. 187268, September 04, 2013