G.R. No. 251940 , July 12, 2021
NOEL T. JASPE (SG 24), MUNICIPAL ENGINEER/BAC VICE CHAIRMAN, STA. BARBARA, ILOILO AND MA. NEGENIA V. ARANETA (SG 24), MUNICIPAL BUDGET OFFICER/BAC MEMBER, STA. BARBARA, ILOILO, PETITIONERS, VS. PUBLIC ASSISTANCE AND CORRUPTION PREVENTION OFFICE AND AGUSTIN SONZA, JR., RESPONDENTS.

FACTS

In 2006, the Municipality of Sta. Barbara, Iloilo conducted a bidding for five infrastructure projects. The Bids and Awards Committee (BAC) was chaired by Lyndofer V. Beup, with petitioners Noel T. Jaspe as Vice Chairman and Ma. Negenia V. Araneta as members, along with Genaro Sonza and Sanny Apuang. Three bidders secured bid documents: Topmost Development and Marketing Corporation (TDMC), F. Gurrea Construction, Incorporated (FGCI), and AFG Construction and Construction Supply (AFG). At the scheduled opening of bids on July 31, 2006, AFG verbally notified the BAC it was not bidding for all projects, with a formal notice to follow. Upon opening the bids, the BAC found letters inside the technical envelopes of TDMC and FGCI stating they were not bidding for certain specific projects because their estimated costs exceeded the Approved Budget for the Contract (ABC). BAC member Sonza questioned this as an improper “withdrawal” and recommended a failure of bidding. BAC Chairperson Beup cited Section 36(c) of Republic Act No. 9184 (RA 9184), which allows a single calculated bidder. Petitioner Jaspe moved to continue with the bid opening and address issues during post-qualification, which was seconded by Apuang. The BAC proceeded, declared TDMC and FGCI as lone bidders for respective projects, and later recommended the award of contracts to them. Respondent Agustin Sonza, Jr. filed a complaint with the Office of the Ombudsman (OMB), alleging irregularities. The OMB referred the matter to the Commission on Audit (COA), which, in a Fact-Finding Investigation Report, concluded the BAC allowed a belated “withdrawal” of bids in violation of RA 9184 and its Implementing Rules and Regulations (IRR), and noted a seeming interlocking directorship between TDMC and FGCI. Graft Investigation and Prosecution Officer Theodore P. Banderado filed a complaint for grave misconduct against BAC members Apuang, Jaspe, and Araneta. The OMB-Visayas found them liable for grave misconduct, imposing the penalty of dismissal with accessory penalties. The Court of Appeals affirmed this decision.

ISSUE

Did petitioners commit grave misconduct when they voted to proceed with the bidding even after one of the supposed participants served notice that it was not bidding for all the five projects, while the two others served separate notices that they were not bidding for certain projects they had identified?

RULING

No, petitioners did not commit grave misconduct. The Supreme Court found a manifest mistake in the inference made from the facts by the OMB-Visayas and the Court of Appeals. The Court held that there was no “withdrawal of bids” as contemplated under Section 26 of RA 9184. A withdrawal of a bid presupposes that a bid was actually submitted. In this case, the bidders (AFG, TDMC, and FGCI) did not submit bids for the projects they identified in their letters; therefore, there were no bids to withdraw. Their actions constituted a simple “non-submission of a bid” or a “non-participation” for certain projects, which is not prohibited by law. The BAC’s decision to proceed was a collegial interpretation made in good faith. Furthermore, the charge of conspiracy based on an alleged interlocking directorship between TDMC and FGCI was not substantiated, as the BAC had no prior knowledge of this, and the bidders’ Articles of Incorporation on record showed different incorporators and addresses. For grave misconduct to exist, there must be clear evidence of a corrupt intent or willful intent to violate the law or disregard established rules, which was not present. The elements of grave misconduct were not proven. Consequently, the Supreme Court REVERSED and SET ASIDE the Decision and Resolution of the Court of Appeals and DISMISSED the charge for Grave Misconduct against Noel T. Jaspe, Ma. Negenia V. Araneta, and Sanny Apuang.