G.R. No. 250445 . March 29, 2022.
PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. GEMMA FLORANTE ADANA, ROLAND CUENCA GRIJALVO, FELIX ABELANO TIMSAN, EMMANUEL FORTUNO ENTERIA, AND JONATHAN KEE CARTAGENA, ACCUSED-APPELLANTS.

FACTS

Accused-appellants, public officials of the Municipality of Naga, Zamboanga Sibugay (Mayor Gemma Florante Adana and Bids and Awards Committee (BAC) members Roland Cuenca Grijalvo, Felix Abelano Timsan, Emmanuel Fortuno Enteria, and Jonathan Kee Cartagena), were charged with violating Section 3(e) of R.A. 3019. They were accused of conspiring with private individual Jose Ely H. Solivar (General Manager of CVCK Trading) in purchasing five heavy equipment from CVCK Trading for Php8,800,000.00 without complying with R.A. 9184 (Government Procurement Reform Act) and its rules. Specific alleged irregularities included: (1) non-publication of the Invitation to Apply for Eligibility and to Bid (IAEB) on the PhilGEPS website; (2) IAEB’s lack of an Approved Budget for the Contract (ABC); (3) issuance of the Notice of Award to CVCK Trading before the approval of the BAC resolution declaring it the winning bidder; (4) absence of a formal contract; (5) post-award modification of the specifications for the road grader and road roller, which was not allowed; and (6) failure to conduct a new public bidding after said modifications, thereby giving unwarranted benefit to CVCK Trading and causing undue injury to the government. The Sandiganbayan found them guilty beyond reasonable doubt.

ISSUE

Whether the Sandiganbayan correctly found accused-appellants guilty beyond reasonable doubt of violating Section 3(e) of R.A. 3019.

RULING

The Supreme Court AFFIRMED the Sandiganbayan’s Decision with MODIFICATION. The conviction of accused-appellants for violation of Section 3(e) of R.A. 3019 was upheld, but they were found guilty of committing the offense through gross inexcusable negligence only, not through evident bad faith or manifest partiality.
The Court found that the prosecution proved all the elements of the crime. Accused-appellants were public officers discharging administrative functions. They committed the prohibited acts through gross inexcusable negligence. Their collective negligence caused undue injury to the government by depriving it of the opportunity to secure the best price and most advantageous terms, and gave unwarranted benefit to CVCK Trading.
The Court detailed the specific negligent acts: (1) Failure to publish the IAEB on the PhilGEPS as mandated by law, notwithstanding the alleged lack of internet, as they could have sought assistance from the DTI or other agencies; (2) Failure to include the ABC in the IAEB, which is a mandatory requirement to ensure transparency; (3) Issuance of the Notice of Award on October 12, 2007, before Mayor Adana approved the BAC Resolution (No. 01-07) declaring CVCK as the winning bidder on October 16, 2007, which rendered the award premature and illegal; (4) Post-award modification of the technical specifications for the road roller and road grader through BAC Resolution No. 01-08 on January 9, 2008, which constituted a substantial amendment that required a new public bidding, which they failed to conduct. This amendment also violated the rule against reference to brand names. The Court rejected the defense that the modifications were mere “amendments to order,” as the changes were not within the allowed scope under the procurement rules.
The Court ruled that while the confluence of irregularities demonstrated gross inexcusable negligence, there was insufficient evidence to prove evident bad faith or manifest partiality, as there was no showing of malicious intent or deliberate wrongdoing. The penalty was imposed based on the value of the undue injury, which was determined to be the total contract price of Php8,800,000.00.