G.R. No. 229265 & G.R. No. 229624, February 15, 2022
SILVINO B. MATOBATO, SR., PETITIONER, VS. PEOPLE OF THE PHILIPPINES, RESPONDENT. [and] WALTER B. BUCAO AND CIRILA A. ENGBINO, PETITIONERS, VS. HONORABLE SANDIGANBAYAN-SPECIAL FIFTH DIVISION AND PEOPLE OF THE PHILIPPINES, RESPONDENTS.

FACTS

On September 22, 1994, the Sangguniang Bayan of Pantukan, Compostela Valley, passed Resolution No. 164 authorizing Municipal Treasurer Silvino B. Matobato, Sr. to transfer municipal funds from Land Bank of the Philippines to Davao Cooperative Bank (DCB). Matobato opened a time deposit account and transferred funds from 1994 to 1998. DCB became insolvent in 1998 and was placed under receivership, preventing the municipality from withdrawing the deposits. The Commission on Audit (COA), in its 1998 Annual Audit Report, found the funds were treated as idle but should have been allocated to projects, and recommended filing charges. The Ombudsman filed an Information for violation of Section 3(e) of R.A. No. 3019 against Matobato, Sangguniang Bayan members Walter B. Bucao and Cirila A. Engbino, and seven other officials before the Sandiganbayan, alleging conspiracy and gross inexcusable negligence in issuing the resolution without investigating DCB’s financial status. The Sandiganbayan acquitted all accused based on reasonable doubt, finding the prosecution failed to prove gross and inexcusable negligence. However, it held them solidarily civilly liable for P9.25 million, the unrecovered funds, finding they were negligent in transferring funds without conducting due diligence on DCB’s solvency, relying merely on the bank manager’s assurances.

ISSUE

Whether the Sandiganbayan correctly held petitioners Silvino B. Matobato, Sr., Walter B. Bucao, and Cirila A. Engbino solidarily civilly liable for the municipality’s unrecovered funds despite their acquittal in the criminal case.

RULING

Yes. The petitions are unmeritorious. The dismissal of a criminal action does not extinguish civil liability when the acquittal is based on reasonable doubt, as only preponderance of evidence is required for civil liability. The Sandiganbayan acquitted the petitioners because their guilt was not proven beyond reasonable doubt, but preponderant evidence established their civil liability. As Municipal Treasurer, Matobato was accountable for the safekeeping of funds under Section 101(1) of P.D. No. 1445 but failed to exercise the care of an ordinarily prudent person. He did not flag risks, vouched for DCB’s status during the Asian Financial Crisis, pushed for investment despite DCB’s new entry, continued deposits after DCB’s authority to accept government deposits expired, and established no contingency measures. Bucao and Engbino, as Sangguniang Bayan members, were also negligent under Section 340 of the Local Government Code for participating in the fund’s use without due diligence. The municipality suffered actual damage by being deprived of the use of its funds for public service for years, regardless of DCB’s pending liquidation. Therefore, the petitioners are solidarily liable to reimburse the Municipality of Pantukan the amount of P9.25 million.