The Supreme Court held that the Sandiganbayan has jurisdiction over cases involving public officials charged with violations of Republic Act No. 3019, also known as the Anti-Graft and Corrupt Practices Act, and other related offenses. This jurisdiction extends to individuals who, by appointment, take part in the performance of public functions, regardless of whether the entity they serve is under sequestration. The Court emphasized that the nature of the charges and the official’s role at the time of the alleged offense determine jurisdiction, reinforcing accountability for those entrusted with public duties. This decision clarifies the scope of the Sandiganbayan’s authority, ensuring that individuals performing public functions are subject to scrutiny under anti-graft laws.

BASECO Under Scrutiny: Can a President Evade Anti-Graft Laws?

This case revolves around Proceso L. Maligalig, who was charged before the Sandiganbayan with violations of Section 3(e) of Republic Act (R.A.) No. 3019 and Article 217 of the Revised Penal Code. Maligalig, then President and a member of the Board of Directors of the Bataan Shipyard and Engineering Co., Inc. (BASECO), was accused of executing a Release, Waiver, and Quitclaim in favor of Northstar Transport Facilities, Inc. without proper authorization. He allegedly received PhP3,554,000.00 from Northstar as settlement for arrearages but did not remit the amount to BASECO, causing undue injury to the company and the government. The central legal question is whether Maligalig, as President of BASECO, could be considered a public officer subject to the jurisdiction of the Sandiganbayan, given BASECO’s status as a sequestered corporation.

Maligalig argued that BASECO, while under sequestration by the Presidential Commission on Good Government (PCGG), was not a government-owned or -controlled corporation (GOCC). He claimed that the PCGG only had powers of administration, not ownership, over the sequestered property. He further asserted that his position as a member of the Board of Directors (BOD) and President of BASECO was due to his ownership of one share of stock in the company, not by virtue of being a public official. Therefore, he contended that the Sandiganbayan lacked jurisdiction over his person, and the Office of the Ombudsman had no authority to file the charges against him.

The Office of the Special Prosecutor (OSP) countered that the Sandiganbayan’s jurisdiction is determined by the allegations in the Informations filed against Maligalig. The OSP pointed out that the Informations sufficiently stated the elements of the crimes charged and that Maligalig himself admitted to being appointed as a member of the BOD and later as President of BASECO by former President Gloria Macapagal-Arroyo. The OSP emphasized that Section 4 of P.D. No. 1606, as amended by R.A. No. 10660, enumerates the officials and offenses cognizable by the Sandiganbayan, which includes public officers like Maligalig.

The Supreme Court, in its analysis, underscored the fundamental importance of jurisdiction in the exercise of judicial power. It cited P.D. No. 1606, as amended by R.A. No. 10660, which explicitly grants the Sandiganbayan original jurisdiction over cases involving violations of R.A. No. 3019, among other offenses, where the accused are officials occupying positions in the government, including presidents, directors, or managers of government-owned or -controlled corporations. The Court noted that the Informations filed against Maligalig clearly stated that he was charged with violating Section 3(e) of R.A. No. 3019 and Malversation of Public Funds through Falsification of Public Document. Furthermore, the Informations alleged that he committed these acts while discharging his official functions and taking advantage of his position as President and member of the BOD of BASECO, a government-owned or -controlled corporation.

The Court firmly stated that the jurisdiction of a court over a criminal case is determined by the allegations in the complaint or information. Once it is established that the court has jurisdiction based on these allegations, it may validly take cognizance of the case. The Court dismissed Maligalig’s defense that he was not a public officer, citing the principle that jurisdiction is not affected by the pleas or theories set up by the defendant. The Court also highlighted Maligalig’s admission in his Counter-Affidavit that he was appointed to his position by the former President, which contradicted his claim that he was not a public officer.

The Supreme Court referred to the definition of a public officer in the Revised Penal Code, which includes any person who, by direct provision of law, popular election, or appointment by competent authority, takes part in the performance of public functions in the Government. The Court further elaborated on the concept of a public officer, citing the Serana v. Sandiganbayan case, which held that an investment in an individual of some portion of the sovereign functions of the government, to be exercised by him for the benefit of the public, makes one a public officer. As President of a sequestered company like BASECO, Maligalig was expected to perform functions that would benefit the public.

Therefore, the Supreme Court concluded that the Sandiganbayan did not commit grave abuse of discretion in denying Maligalig’s Motion to Quash and Motion for Reconsideration. The Sandiganbayan had jurisdiction over the case and over Maligalig’s person, as the offenses charged and his position, as alleged in the Informations, fell within the purview of P.D. No. 1606, as amended by R.A. No. 10660. The Court’s decision reaffirms the Sandiganbayan’s authority to prosecute public officials for graft and corruption, even in the context of sequestered corporations.

FAQs

What was the key issue in this case?	The key issue was whether the Sandiganbayan had jurisdiction over Proceso L. Maligalig, who was charged with violations of anti-graft laws while serving as President of BASECO, a sequestered corporation. Maligalig argued he wasn’t a public officer, thus not subject to the Sandiganbayan’s jurisdiction.
What is BASECO, and what was its status during the time of the alleged offenses?	BASECO, or Bataan Shipyard and Engineering Co., Inc., is a corporation that was under sequestration by the Presidential Commission on Good Government (PCGG) at the time the alleged offenses occurred. This means it was under government control due to allegations of being illegally acquired.
What crimes was Proceso L. Maligalig charged with?	Maligalig was charged with violating Section 3(e) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act, and Malversation of Public Funds through Falsification of Public Document. These charges stemmed from his actions as President of BASECO.
What was Maligalig’s defense against the charges?	Maligalig argued that he was not a public officer because BASECO was not a government-owned or -controlled corporation, and his position was due to his ownership of stock in the company. Therefore, he claimed the Sandiganbayan had no jurisdiction over him.
What did the Office of the Special Prosecutor (OSP) argue?	The OSP argued that the Sandiganbayan’s jurisdiction is determined by the allegations in the Informations, which stated that Maligalig was a public officer and that the crimes fell under the Sandiganbayan’s jurisdiction. They also pointed to his appointment by the former President.
How does the law define a public officer?	The Revised Penal Code defines a public officer as any person who, by direct provision of law, popular election, or appointment by competent authority, takes part in the performance of public functions. This definition was a key point in determining Maligalig’s status.
What was the Supreme Court’s ruling in this case?	The Supreme Court ruled that the Sandiganbayan had jurisdiction over Maligalig’s case because he was considered a public officer by virtue of his appointment and the public functions he performed as President of BASECO. The Court denied his petition.
Why did the Supreme Court consider Maligalig a public officer?	The Supreme Court considered Maligalig a public officer because he was appointed to his position and performed functions that benefitted the public as President of a sequestered company. This aligned with the legal definition of a public officer.
What is the practical implication of this ruling?	This ruling reinforces the Sandiganbayan’s authority to prosecute individuals holding positions in sequestered companies for graft and corruption. It clarifies that such individuals can be considered public officers subject to anti-graft laws.

This case underscores the importance of accountability for individuals holding positions of authority in entities subject to government oversight. The Supreme Court’s decision reaffirms that those who perform public functions, regardless of the specific nature of the entity they serve, are subject to the jurisdiction of the Sandiganbayan and must adhere to the standards of conduct expected of public officers.

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: PROCESO L. MALIGALIG v. SANDIGANBAYAN, G.R. No. 236293, December 10, 2019