In Carmencita O. Reyes v. Sandiganbayan, the Supreme Court addressed whether there was probable cause to indict a public official for graft and technical malversation based on her requests for certain equipment purchases. The Court ruled that the Sandiganbayan did not commit grave abuse of discretion in finding probable cause, emphasizing that the petitioner’s defenses were matters to be resolved during trial. This decision clarifies the threshold for establishing probable cause in cases involving alleged misuse of public funds and the extent to which a public official’s actions can be scrutinized for potential graft.

From Recommendation to Responsibility: Can a Governor’s Request Trigger Anti-Graft Prosecution?

The case originated from the investigation into the P728,000,000.00 fertilizer fund scandal. Carmencita O. Reyes, then Governor of Marinduque, faced accusations of violating Section 3(e) of R.A. No. 3019, the Anti-Graft and Corrupt Practices Act, and Article 220 of the Revised Penal Code (Technical Malversation). These charges stemmed from her alleged involvement in directing the Department of Agriculture (DA) to procure equipment from LCV Design and Fabrication Corporation, purportedly without proper bidding and for purposes outside the intended use of the funds. The Ombudsman filed two Informations against Reyes, which were consolidated into one case at the Sandiganbayan.

The core of the controversy revolves around a letter and purchase request initiated by Reyes, which allegedly influenced the DA to transact with LCV Design and Fabrication Corporation. The prosecution argued that Reyes’ actions constituted manifest partiality and evident bad faith, leading to undue injury to the government. Reyes countered that her actions were merely requests and that she did not administer the funds in question. She asserted that the evidence presented by the Ombudsman did not establish probable cause for either the violation of Section 3(e) of R.A. No. 3019 or Article 220 of the RPC. The Sandiganbayan, however, found probable cause and denied Reyes’ motions to dismiss the charges, leading to the present petition before the Supreme Court.

In resolving the issues, the Supreme Court reiterated that a certiorari proceeding is limited to correcting errors of jurisdiction, not errors of procedure or mistakes in factual findings. The Court emphasized that it would only intervene if the Sandiganbayan acted without or in excess of its jurisdiction, or with grave abuse of discretion. The Court then addressed the substantive issues, beginning with the charge of violating Section 3(e) of R.A. No. 3019, which states:

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:

(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.

Reyes argued that the elements of this offense were not sufficiently established, particularly the presence of manifest partiality, evident bad faith, or gross inexcusable negligence. She claimed that her letter and purchase requests were merely that – requests – and did not compel the DA to act in any particular way. However, the Court sided with the public respondent’s contention that Reyes’s request had the appearance of regularity but, upon careful analysis, induced or even ordered the DA to procure the subject equipment from LCV, which she identified as the “inventor, manufacturer, and exclusive distributor.” This specific mention of LCV, according to the Court, indicated Reyes’s strong preference for the DA to transact with that particular company.

Moreover, the Court highlighted the Joint-Counter-Affidavit of Reyes’s co-respondents, DA FRFU-IV employees, who alleged that the proponents, including Reyes, had a direct hand in the questioned transactions. This direct involvement, coupled with the explicit mention of the “TORNADO” brand (exclusively distributed by LCV) in the Requisition and Issue Slip, provided sufficient basis for the Sandiganbayan to find probable cause. It is important to note that in the determination of probable cause, the court does not require absolute certainty, only a well-founded belief that a crime has been committed and that the accused is probably guilty thereof. Any assertion by Reyes that negates the implication of the documents are considered matters of defense, which are more appropriately resolved during trial.

The Court then turned to the charge of Technical Malversation under Article 220 of the RPC, which provides:

Any public officer who shall apply any public fund or property under his administration to any public use other than that 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 serious damage or embarrassment shall have been caused to the public service.

Reyes argued that she was not the administrator of the funds in question and therefore could not be held liable under Article 220. She also claimed that her letter request contained no inducement to divert the funds. The Supreme Court disagreed, reiterating that the letter request and purchase request, along with the Requisition and Issue Slip mentioning the “TORNADO” brand, were sufficient to engender a well-founded belief that the crime had been committed. The determination of whether the equipment purchased was in accordance with the purpose for which the fund was appropriated is a matter of defense.

Furthermore, Reyes challenged the Sandiganbayan’s reliance on the Senate Blue Ribbon Committee Report, arguing that it was not part of the record and constituted hearsay. The Court dismissed this argument, emphasizing that the Ombudsman conducted its own preliminary investigation and referred to the Senate report as an additional basis for its findings. The Court emphasized that the Ombudsman, faced with the facts and circumstances, was led to believe that a crime had been committed and that Reyes was probably guilty. That the Ombudsman referred to the Senate Blue Ribbon Committee Report as an additional basis for its findings does nothing to refute the validity of the preliminary investigation, the evidence gathered therein, or the conclusion of the Ombudsman after that investigation.

The Supreme Court thus concluded that the Sandiganbayan did not commit grave abuse of discretion in denying Reyes’s motions. It reiterated that grave abuse of discretion implies such capricious and whimsical exercise of judgment as is equivalent to lack of jurisdiction. The Court found no such abuse in the Sandiganbayan’s actions. The Court also emphasized the importance of allowing the trial to proceed, where all factual and legal issues could be fully ventilated and resolved.

FAQs

What was the key issue in this case?	The key issue was whether the Sandiganbayan committed grave abuse of discretion in finding probable cause to indict Carmencita O. Reyes for violation of Section 3(e) of R.A. No. 3019 and Article 220 of the RPC. This centered on the sufficiency of evidence linking her requests to the alleged misuse of public funds.
What is Section 3(e) of R.A. No. 3019?	Section 3(e) of the Anti-Graft and Corrupt Practices Act prohibits public officials from causing undue injury to the government or giving unwarranted benefits to any party through manifest partiality, evident bad faith, or gross inexcusable negligence. It is a cornerstone provision in combating corruption in the Philippines.
What is Technical Malversation under Article 220 of the RPC?	Technical Malversation, as defined in Article 220 of the Revised Penal Code, occurs when a public officer applies public funds or property under their administration to a public use other than that for which the funds or property were originally appropriated. This is a specific type of misappropriation under Philippine law.
What does ‘probable cause’ mean in this context?	In the context of initiating criminal proceedings, probable cause refers to the existence of sufficient facts to induce a reasonable belief that an offense has been committed and that the accused is probably guilty of committing it. It is a lower standard than proof beyond reasonable doubt, required for conviction.
Why did the Supreme Court deny Reyes’s petition?	The Supreme Court denied Reyes’s petition because it found that the Sandiganbayan did not commit grave abuse of discretion in finding probable cause. The Court held that Reyes’s arguments were matters of defense that should be resolved during trial.
What role did the Senate Blue Ribbon Committee Report play in the case?	The Senate Blue Ribbon Committee Report was used by the Ombudsman as an additional basis for its findings of probable cause. The Supreme Court clarified that the Ombudsman also conducted its own preliminary investigation.
What is the significance of Reyes’s letter and purchase request?	Reyes’s letter and purchase request were central to the case because they were seen as inducing or directing the Department of Agriculture to procure equipment from a specific company without proper bidding. This action formed the basis for the charges against her.
What are the implications of this ruling for public officials?	This ruling underscores that public officials can be held accountable for actions that influence the misuse of public funds, even if those actions take the form of recommendations or requests. It also reinforces the importance of transparency and proper procedures in government procurement.

The Supreme Court’s decision in Carmencita O. Reyes v. Sandiganbayan serves as a reminder of the responsibilities of public officials in managing public funds. While the finding of probable cause is not a conviction, it necessitates a full trial where the accused can present their defense. This case highlights the importance of due diligence and adherence to proper procedures in government transactions.

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: CARMENCITA O. REYES v. SANDIGANBAYAN, G.R. Nos. 203797-98, June 27, 2018