G.R. No. 209845, July 1, 2015
MELCHOR G. MADERAZO and DIONESIO R. VERUEN, JR., Petitioners, vs. PEOPLE OF THE PHILIPPINES and SANDIGANBAYAN, Respondents.

FACTS

On January 21, 1998, the Sangguniang Bayan (SB) of Caibiran, Biliran, unanimously passed Resolution No. 01, Series of 1998, authorizing the municipal mayor to enter into a negotiated contract for tapping saddles. On January 28, 1998, petitioner Melchor G. Maderazo, the Acting Mayor, entered into a Job Contract with Artemio Vermug for the fabrication of 400 tapping saddles at ₱400.00 each, totaling ₱160,000.00, payable upon completion within 30 days. On the same day, however, Acting Municipal Treasurer Domingo Vidal issued a check for ₱154,036.37 to Vermug upon submission of a Disbursement Voucher, an Official Receipt, and an undated Inspection Report certified by petitioner Dionesio R. Veruen, Jr. (the Acting Municipal Accountant) and noted by Maderazo. When Mayor Rodito Ramirez resumed his position on February 8, 1998, no tapping saddles had been delivered. An audit revealed only 188 pieces were delivered much later, on August 10, 1998, and supporting documents like Purchase Requests and Delivery Receipts were missing. Vermug testified he did not fabricate or deliver the saddles on January 28, 1998, and did not receive the payment, as he endorsed the check back to Maderazo. The Ombudsman filed an Information for violation of Section 3(e) of R.A. 3019. The Sandiganbayan convicted Maderazo and Veruen, finding they acted in evident bad faith by causing payment without delivery, causing undue injury to the government, and acquitted the SB members. Their motion for reconsideration was denied.

ISSUE

Whether petitioners Melchor G. Maderazo and Dionesio R. Veruen, Jr. violated Section 3(e) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act.

RULING

Yes, the Supreme Court affirmed the Sandiganbayan’s decision. The Court found all elements of Section 3(e) of R.A. 3019 present: (1) petitioners were public officers discharging administrative functions; (2) they acted with evident bad faith by ensuring the release of payment on the same day the contract was executed despite the contractual term that payment was due upon completion and the impossibility of immediate delivery, and by processing the disbursement with an undated Inspection Report and lacking required supporting documents; and (3) their actions caused undue injury to the Municipality of Caibiran in the amount of ₱160,000.00. The Court upheld the factual findings of the Sandiganbayan, noting petitioners failed to show any exception to the rule that such findings are conclusive. The Court also found conspiracy, as their concerted actions in approving the voucher and report were essential to the crime. The affidavit of desistance by Mayor Ramirez was deemed unreliable. The penalty imposed by the Sandiganbayan was sustained.