GR L 9507; (January, 1957) (Digest)
G.R. No. L-9507; January 29, 1957
GONZALO N. RUBIC, petitioner, vs. AUDITOR GENERAL, respondent.
FACTS
Petitioner Gonzalo N. Rubic informed the Mayor of Manila in August 1952 that importers Alfredo Lladoc and Valentin Garcia were disposing of potatoes in the market for commercial purposes, in violation of their import license which authorized importation for seedling purposes only under Republic Act No. 650. Acting on this information, police officers seized 3,049 crates of potatoes. The importers were charged and pleaded guilty to violating Republic Act No. 650. The Court of First Instance of Manila sentenced them to pay fines and ordered the confiscation and public auction of the potatoes. The net proceeds from the sale amounted to P49,729.80, which were deposited in the Philippine Treasury to the credit of the court and the general funds. Petitioner filed a claim for a reward under Section 1411 of the Revised Administrative Code. The Acting Commissioner of Customs and the Auditor General denied the claim, ruling that the information did not concern a “fraud upon the customs revenue” as required by the law, since customs duties had been duly paid and the violation pertained to the misuse of the import license after release from customs. Petitioner appealed to the Supreme Court.
ISSUE
Whether the information furnished by petitioner, which led to the seizure, confiscation, and sale of potatoes imported under a license for seedling purposes but diverted to commercial use, constitutes information leading to the discovery of a “fraud upon the customs revenue” entitling him to a reward under Section 1411 of the Revised Administrative Code.
RULING
Yes. The Supreme Court reversed the decision of the Auditor General and granted petitioner’s claim for a reward of P10,000. The Court held that the fraudulent act of the importers—misrepresenting the purpose of importation to secure a license and then diverting the potatoes to the market—constituted a fraud upon the customs revenue. The potatoes, being imported for consumption contrary to law, were merchandise of prohibited importation subject to forfeiture under Section 1363 of the Revised Administrative Code. The proceeds from the sale of the confiscated potatoes, though deposited in the general funds, are considered customs revenue recovered as a result of the information. The Court emphasized the necessity of liberally interpreting reward provisions to incentivize informers in combating graft and corruption, thereby serving the public interest. The amount of P10,000 is to be paid to petitioner from the proceeds of the auction sale.