G.R. No. 246942 & 248916, August 14, 2023
People of the Philippines, Plaintiff-Appellee, vs. Josephine Angsico, Virgilio V. Dacalos, Felicisimo F. Lazarte, Jr., Josephine T. Espinosa, and Noel A. Lobrido, Accused; Josephine Casenas-Hottle (formerly Angsico), Virgilio V. Dacalos, Felicisimo F. Lazarte, Jr., and Noel A. Lobrido, Accused-Appellants. [G.R. No. 248916] People of the Philippines, Plaintiff-Appellee, vs. Josephine Angsico, Robert Balao, Virgilio V. Dacalos, Felicisimo F. Lazarte, Jr., Josephine T. Espinosa, Noel A. Lobrido, and Jose M. Cruz, Accused; Josephine T. Espinosa, Accused-Appellant.

FACTS

This case involves consolidated appeals from a Sandiganbayan Decision finding the accused-appellants guilty of violating Section 3(e) of R.A. No. 3019 (Anti-Graft and Corrupt Practices Act). The charges stemmed from the implementation of the Pahanocoy Sites and Services Project in Bacolod City by the National Housing Authority (NHA). The original contract with A.C. Cruz Construction was rescinded, and the unfinished portion was awarded to Triad Construction and Development Corporation (Triad) at a contract price of PHP 9,554,837.32. After final payment, irregularities were exposed, prompting a COA special audit. The audit revealed two main irregularities: (1) The total payment to Triad (PHP 10,024,970.79) exceeded the allowable Ceiling Contract Price with Price Escalation (PHP 7,569,355.78) by PHP 2,455,615.01 without the required presidential approval; and (2) There were two conflicting Abstracts of Physical Accomplishment for Triad’s final billing. The First Abstract showed a net amount due of PHP 330,075.76, while the Second Abstract, which was processed and paid, showed PHP 1,280,964.20. The Second Abstract, which resulted in the overpayment, was checked by Lobrido, certified by Espinosa, concurred by Dacalos, and recommended for approval by Angsico. The prosecution’s evidence showed that the final billing had been altered without a required variation order and that the contract awarded to Triad did not specify items of civil works. The accused-appellants, all NHA officials, defended the additional payments, claiming they were for extra works left by the previous contractor and that they proceeded without a formal variation order due to time constraints to meet a World Bank funding deadline.

ISSUE

Whether the Sandiganbayan correctly found the accused-appellants guilty beyond reasonable doubt of violating Section 3(e) of R.A. No. 3019 .

RULING

Yes, the Sandiganbayan’s conviction is affirmed. The elements of violation of Section 3(e) of R.A. No. 3019 are: (1) the accused is a public officer; (2) the accused acted with manifest partiality, evident bad faith, or gross inexcusable negligence; and (3) the accused’s action caused undue injury to any party, including the government, or gave any private party unwarranted benefits, advantage, or preference. All elements are present. First, the accused-appellants were public officers. Second, they acted with evident bad faith. Their collective actions in processing, certifying, concurring with, and recommending for approval the Second Abstract—which reflected a significantly higher payment than the First Abstract—despite the absence of a required contract variation order to justify the additional works, demonstrated a conscious and intentional design to deviate from established rules. Their claim of urgency due to World Bank deadlines does not excuse the omission of a mandatory variation order. Third, their actions gave unwarranted benefit, advantage, and preference to Triad and its president, Jose M. Cruz, by causing the payment of PHP 1,280,964.20 instead of the PHP 330,075.76 reflected in the First Abstract, to the damage and prejudice of the government. The defense of good faith is unavailing as their disregard of a clear rule requiring a variation order negates any claim of good faith. The penalty imposed by the Sandiganbayan is affirmed: imprisonment of 6 years and 1 month as minimum to 10 years as maximum, with perpetual disqualification from holding public office.