GR 237738; (June, 2019) (Digest)
G.R. No. 237738 June 10, 2019
FILOMENA L. VILLANUEVA, Petitioner vs. PEOPLE OF THE PHILIPPINES, Respondent
FACTS
Petitioner Filomena L. Villanueva, the Assistant Regional Director of the Cooperative Development Authority (CDA) for Region II, was charged with violating Section 7(d) of Republic Act No. 6713 (Code of Conduct and Ethical Standards). The prosecution alleged that she willfully obtained a ₱1,000,000.00 loan from the Claveria Agri-Based Multi-Purpose Cooperative, Incorporated (CABMPCI), a cooperative regulated by her office, while in the performance of her official functions.
In her defense, Villanueva asserted that the loan was obtained by virtue of her membership in CABMPCI, a right she claimed was allowed under the Cooperative Code (R.A. 6938). She maintained the loan had been paid and that her membership rights permitted such transactions. The Municipal Circuit Trial Court convicted her, a ruling affirmed by the Regional Trial Court and subsequently by the Sandiganbayan, prompting this appeal.
ISSUE
Whether the Sandiganbayan erred in upholding petitioner’s conviction for violating Section 7(d) of R.A. 6713.
RULING
The Supreme Court affirmed the conviction but modified the penalty. The legal logic centered on the elements of the offense under Section 7(d) of R.A. 6713: (1) the accused is a public official; (2) she solicited or accepted a loan or anything of monetary value; and (3) the act was done in the course of her official duties or in connection with any operation regulated by her office. All elements were proven. Petitioner was a public official who obtained a loan from CABMPCI, an entity undeniably regulated by the CDA, as she admitted during trial that her duties included regulating cooperatives in her area.
The Court rejected the defense that her cooperative membership legitimized the loan. While R.A. 6938 allows open membership, it does not exempt a CDA official from the blanket prohibition in R.A. 6713 against accepting loans from persons or entities connected to their official functions. The law aims to prevent conflicts of interest and maintain public trust, prohibiting such transactions regardless of repayment or membership status. The act of obtaining the loan itself consummated the violation. However, considering the absence of ill motive and that the loan was paid, the Court modified the penalty from imprisonment to a ₱5,000.00 fine, the maximum under the law.