G.R. No. 237172, September 18, 2019
MARIO JOEL T. REYES, PETITIONER, VS. PEOPLE OF THE PHILIPPINES, RESPONDENT.

FACTS

Petitioner Mario Joel T. Reyes, then Governor of Palawan, approved the renewal of a Small Scale Mining Permit (SSMP PLW No. 37.1) for Olympic Mines and Development Corporation (OMDC) on April 6, 2006, valid until April 5, 2008. This renewal was granted despite OMDC having already exhausted the 50,000 dry metric ton extraction limit under its previous permit (SSMP PLW No. 37), which was still valid until November 3, 2006. Records showed that from May 30, 2005 to April 3, 2006, OMDC, through its agent Platinum Group Metal Corporation, had already transported 203,399.135 dry metric tons of nickel ore, exceeding the allowable limit. The Provincial Mining Regulatory Board had unanimously recommended the renewal. Reyes was charged with violation of Section 3(e) of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act) for allegedly giving unwarranted benefits to OMDC through manifest partiality, evident bad faith, or gross inexcusable negligence. The Sandiganbayan found him guilty of gross inexcusable negligence, acquitted his co-accused, and later revoked his bail due to violations of bail conditions and risk of flight. Reyes filed a Petition for Review on Certiorari.

ISSUE

Whether the Sandiganbayan erred in finding petitioner Mario Joel T. Reyes guilty beyond reasonable doubt of violation of Section 3(e) of Republic Act No. 3019.

RULING

No. The Supreme Court denied the petition and affirmed the Sandiganbayan’s Decision. The Court held that petitioner, as provincial governor, acted with gross inexcusable negligence in renewing the small scale mining permit. The approval of such permits is a discretionary act, and a governor has the duty to ensure that the applicant complies with the terms of its previous permit and applicable laws. Petitioner failed to exercise due diligence by renewing the permit despite knowledge that OMDC had already exceeded the extraction limits. The Court ruled that the 50,000 dry metric ton limit under Presidential Decree No. 1899 was not repealed by Republic Act No. 7076, as clarified in SR Metals, Inc. v. Reyes. Petitioner’s reliance on the Provincial Mining Regulatory Board’s recommendation did not absolve him, as his discretionary authority required independent evaluation. His actions gave unwarranted benefits to OMDC and caused undue injury to the government. The Court also upheld the revocation of his bail, finding that the Sandiganbayan did not gravely abuse its discretion given petitioner’s previous violations of bail conditions and the risk of flight after his conviction.