G.R. No. 45532; October 13, 1938
THE PEOPLE OF THE PHILIPPINES, plaintiff-appellee, vs. PRUDENCIO FEVIDAL, defendant-appellant.

FACTS

Prudencio Fevidal was charged with violating section 2761 of the Administrative Code for allegedly having a prohibited interest in a municipal business. The information alleged that on or about February 20, 1936, and prior thereto, while serving as a municipal councilor of Jaro, Leyte, he indirectly took part in a public auction for stall No. 1 of the public market and possessed a pecuniary interest in its lease. Evidence (Exhibits A, B, and C) showed that the stall was awarded to the highest bidder, Abdon Relevo, at public auctions on December 3 and 12, 1934. Relevo bid in the name and for the account of Fevidal and his wife. The trial court found him guilty and sentenced him to imprisonment.

ISSUE

Whether the accused is guilty of violating section 2761 of the Administrative Code by having a prohibited interest in a municipal business while a public officer.

RULING

No. The Supreme Court reversed the trial court’s judgment and acquitted the accused. The Court held that section 2761 prohibits a municipal officer from being directly or indirectly interested in any business of the municipality. The lower court’s findings, which the Supreme Court accepted as binding on questions of fact, established that Fevidal was not yet a municipal councilor or employee when he indirectly acquired an interest in the market stall through the public auctions on December 3 and 12, 1934. Since the prohibition applies only to acts committed while one is a public officer, and Fevidal was not an officer at the time of the auction, he did not violate the law. The Court emphasized the purpose of the law is to prevent a municipal officer from having undue advantages or serving conflicting interests.

AI Generated by Armztrong.