G.R. Nos. 250366 and 250388-98. April 06, 2022.
People of the Philippines, Plaintiff-Appellee, vs. Carlos Racadio Asuncion, Mamelfa R. Amongol, Genoveva R. Ragasa, Rosita R. Ragunjan, and Virginia R. Rafanan, Accused-Appellants.

FACTS

Accused-appellant Carlos R. Asuncion was the Municipal Mayor of Sta. Catalina, Ilocos Sur from 2007 to 2016. Accused-appellants Mamelfa Amongol, Genoveva Ragasa, Rosita Ragunjan, and Virginia Rafanan were Presidents of their respective chapters of the Bayanihan ng Kababaihan, a women’s organization. On June 4, 2012, Asuncion approved four undated project proposals and entered into Memoranda of Agreement with the four accused-appellant chapter presidents. Under these agreements, each chapter received PHP 100,000.00 as financial assistance for livelihood projects, sourced from the municipality’s share of the Tobacco Excise Tax under R.A. No. 7171. Asuncion, as the approving authority, approved the release of the funds, and the accused-appellants received and negotiated the checks on June 15, 2012. The beneficiaries were the chapters, not the federation itself. The funds were public funds. On February 22, 2016, the financial assistance, which was disallowed by the Commission on Audit, was settled or returned by the four chapter presidents. The private complainant, Jonathan Amando R. Redoble, filed a complaint-affidavit before the Office of the Ombudsman, leading to the filing of informations against the accused-appellants for Violation of Section 3(e) of R.A. No. 3019 (giving unwarranted benefit through manifest partiality), Violation of Section 3(j) of R.A. No. 3019 (knowingly granting a privilege to unqualified individuals), and Malversation of Public Funds. The Sandiganbayan found them guilty beyond reasonable doubt of all charges, finding conspiracy among them.

ISSUE

Whether the Sandiganbayan correctly convicted the accused-appellants of Violation of Section 3(e) of R.A. No. 3019, Violation of Section 3(j) of R.A. No. 3019, and Malversation of Public Funds.

RULING

The Supreme Court affirmed the Sandiganbayan’s conviction for Violation of Section 3(e) of R.A. No. 3019 but acquitted the accused-appellants of Violation of Section 3(j) of R.A. No. 3019 and Malversation of Public Funds.
Regarding Violation of Section 3(e) of R.A. No. 3019, the Court found all elements present. Asuncion, a public officer, acted with manifest partiality by granting financial assistance to the Bayanihan ng Kababaihan chapters despite the lack of a prior appropriation ordinance from the Sangguniang Bayan, which was required by law. This omission constituted gross inexcusable negligence. The grant caused undue injury to the government by depriving it of the lawful use of public funds. The Court upheld the finding of conspiracy, as the private accused-appellants, as chapter presidents, actively participated by submitting project proposals, entering into MOAs, and receiving the checks, with full awareness of the lack of the required ordinance.
Regarding Violation of Section 3(j) of R.A. No. 3019, the Court acquitted the accused-appellants. The prosecution failed to prove the element that the Bayanihan ng Kababaihan chapters were “not qualified” or “not legally entitled” to receive the benefit. The organization was duly accredited by the Sangguniang Bayan, and R.A. No. 7171 and its implementing rules did not restrict beneficiaries solely to tobacco farmers’ associations. The prosecution’s evidence was insufficient to establish the chapters’ disqualification.
Regarding Malversation of Public Funds, the Court acquitted the accused-appellants. The element of conversion or misappropriation was not proven. The funds were used for their intended purpose—livelihood projects for the organization’s members—as evidenced by the project proposals, MOAs, and liquidation reports. The subsequent disallowance and settlement by the COA did not, by itself, establish criminal conversion for personal use. The return of the disallowed amount negated the presumption of misappropriation.
The Court modified the penalties. For each count of Violation of Section 3(e) of R.A. No. 3019, each accused-appellant is sentenced to imprisonment of six years and one month as minimum to ten years as maximum, with perpetual disqualification from holding public office. The fines imposed for malversation are deleted.