G.R. No. 218652, February 23, 2022
Rodrigo Deriquito Villanueva, Petitioner, vs. People of the Philippines, Respondent.

FACTS

The Municipality of Janiuay, Iloilo, through its Mayor, entered into a Memorandum of Agreement with the Department of Health to implement a program for purchasing medicines. A public bidding was scheduled. The Committee on Awards, composed of municipal officers, proceeded with the opening of bids on January 15, 2001, despite the absence of a provincial auditor. The committee recommended and the Mayor approved the award of contracts to AM-Europharma Corporation (for P13,191,223.00) and Mallix Drug Center (for P1,744,926.00). Both companies were owned by petitioner Rodrigo Villanueva. Payment was made, and the medicines were delivered. A post-audit revealed irregularities: the provincial auditor was not notified, no performance bond was required, and Europharma’s DOH accreditation was suspended at the time of bidding. Furthermore, a third supposed bidder, Phil. Pharmawealth, Inc., disowned its participation. The Office of the Ombudsman found probable cause, and an Information was filed charging the municipal officers and Villanueva with violating Section 3(e) of R.A. 3019 (Anti-Graft and Corrupt Practices Act). The Sandiganbayan found all accused guilty beyond reasonable doubt.

ISSUE

Whether the Sandiganbayan correctly found petitioner Rodrigo Villanueva guilty beyond reasonable doubt of violating Section 3(e) of R.A. 3019.

RULING

Yes. The Supreme Court affirmed the Sandiganbayan’s decision. The Court found that all elements of violation of Section 3(e) of R.A. 3019 were present: (1) the accused are public officers (except Villanueva, a private individual charged in conspiracy with them); (2) the accused acted with manifest partiality, evident bad faith, or gross inexcusable negligence; and (3) their action caused undue injury to any party, including the government, or gave any private party unwarranted benefits, advantage, or preference. The public officers, in conspiracy with Villanueva, acted with manifest partiality and evident bad faith by awarding contracts to Villanueva’s companies despite clear grounds for disqualification (Europharma’s suspended accreditation and the common ownership of the two bidders), and by proceeding with the bidding without the required provincial auditor. This gave Villanueva’s companies unwarranted benefits and preference to the detriment of public interest. The defense of good faith was rejected, as the irregularities were patent and the rules were blatantly disregarded.