G.R. No. 237738 , June 10, 2019
FILOMENA L. VILLANUEVA, Petitioner, vs. PEOPLE OF THE PHILIPPINES, Respondent.

FACTS

Petitioner Filomena L. Villanueva was the Assistant Regional Director of the Cooperative Development Authority (CDA) for Region II. An Information was filed against her for violating Section 7(d) of Republic Act No. 6713 (the Code of Conduct and Ethical Standards for Public Officials and Employees). The prosecution alleged that while performing her official functions and taking advantage of her office, she willfully obtained a ₱1,000,000.00 loan from the Claveria Agri-Based Multi-Purpose Cooperative, Incorporated (CABMPCI). This act was alleged to violate the prohibition against public officials directly or indirectly soliciting or accepting any loan or anything of monetary value from any person in the course of their official duties or in connection with any operation regulated by their office. In her defense, Villanueva maintained that the loans were obtained by virtue of her membership in CABMPCI, a right she claimed was allowed under the Cooperative Code of the Philippines ( R.A. No. 6938 ), and that the loans had been paid. The Municipal Circuit Trial Court (MCTC) convicted her, a ruling affirmed by the Regional Trial Court (RTC) and subsequently by the Sandiganbayan (SB).

ISSUE

Whether or not the Sandiganbayan erred in upholding the conviction of petitioner for violation of Section 7(d) of R.A. No. 6713 .

RULING

The Supreme Court upheld the conviction. The Court ruled that all elements for violating Section 7(d) of R.A. No. 6713 were proven: (a) Villanueva was a public official; (b) she solicited and accepted loans from CABMPCI; and (c) this was done in connection with an operation regulated by her office, as she admitted during trial that her duties included regulating cooperatives in some aspects like their audited financial statements. The Court held that while R.A. No. 6938 allows CDA officials to become cooperative members, it does not exempt them from the prohibitions of R.A. No. 6713 . The limitation on obtaining loans from regulated cooperatives is a necessary consequence of holding public office and is aligned with the law’s policy to promote a high standard of ethics in public service, where public interest must prevail over personal interest. The act is classified as mala prohibita. However, the Court deemed it appropriate to modify the penalty imposed, as the maximum five-year imprisonment was not commensurate, but the full text of the modification is not provided in the excerpt.