Maderazo v. People
REITERATIONFacts
The Antecedents: On January 21, 1998, the Sangguniang Bayan of Caibiran, Biliran, passed Resolution No. 01, authorizing the municipal mayor to enter into a negotiated contract for the fabrication of tapping saddles for the water system. On January 28, 1998, Melchor G. Maderazo, Acting Mayor, entered into a Job Contract with Artemio Vermug of Vermug Welding Shop for 400 tapping saddles at ₱400.00 each. On the same day, Acting Municipal Treasurer Domingo Vidal issued a Land Bank Check for ₱154,036.37 to Vermug Welding Shop upon submission of a Request for Obligation and Allotment, Disbursement Voucher, Official Receipt, and an undated Inspection Report certified by Victor Maderazo and Dionesio R. Veruen, Jr., and noted by Maderazo. Mayor Rodito Ramirez, upon resuming office on February 8, 1998, found no tapping saddles delivered despite payment. An affidavit-complaint was filed charging Maderazo, Veruen, and SB members with Malversation and violation of RA 3019. A subsequent audit revealed that 188 tapping saddles were delivered on August 10, 1998, but the payment was made on January 28, 1998, the same day the Job Contract was signed. The audit also noted the absence of a Purchase Request, Purchase Order, Delivery Receipts, and Acceptance Report. Procedural History: The Ombudsman issued an Information dated October 22, 2003, charging Maderazo, Veruen, and SB members with violation of Section 3(e) of RA 3019. Maderazo, Veruen, Victor Maderazo, Nestorio Rosario, Florentino Banquilay, and Imelda Cuevas pleaded not guilty. The case against Florentino Banquilay was dismissed due to his death. The Sandiganbayan, in a Decision dated May 30, 2013, found Maderazo and Veruen guilty beyond reasonable doubt of violation of Section 3(e) of RA 3019, holding that they acted in evident bad faith by disbursing funds without delivery, causing undue injury to the Local Government Unit (LGU). Conspiracy was found between Maderazo and Veruen. The Sandiganbayan acquitted the SB members due to insufficient evidence linking them to the crime. The Sandiganbayan denied their motion for reconsideration in a Resolution dated November 13, 2013. The Petition: Maderazo and Veruen filed a petition for review assailing the Sandiganbayan's decision and resolution.
Issue(s)
Whether Maderazo and Veruen violated Section 3(e) of RA 3019 by ensuring the release of payment for tapping saddles despite their non-delivery, thereby acting in evident bad faith and causing undue injury to the LGU of Caibiran.
Ruling
The petition has no merit. The Supreme Court affirmed the Decision dated May 30, 2013, and the Resolution dated November 13, 2013, of the Sandiganbayan in Criminal Case No. 27916, finding Melchor G. Maderazo and Dionesio R. Veruen, Jr. guilty beyond reasonable doubt of violation of Section 3(e) of RA 3019.
Ratio Decidendi
On the violation of Section 3(e) of RA 3019: The Supreme Court affirmed the Sandiganbayan's finding that all the elements of Section 3(e) of RA 3019 were present. Maderazo, as Acting Mayor, and Veruen, as Acting Municipal Accountant, were public officers discharging administrative functions. They ensured the release of payment for the tapping saddles on the same day the Job Contract was executed. However, no tapping saddles were actually delivered on that date, as confirmed by the Municipal Engineer and the proprietor of Vermug Welding Shop, Artemio Vermug, who admitted signing the contract and issuing a receipt but stated he did not deliver or fabricate the saddles because it was impossible to do so on the same day. Vermug also testified that he endorsed the check and returned it to Maderazo, and that Municipal Treasurer Domingo Vidal encashed it and delivered the proceeds to Maderazo, which Vidal corroborated. There was no proof of installation of the alleged delivered tapping saddles. Maderazo processed the Request for Obligation and Allotment, received the payment, and covered up the non-existent delivery by belatedly effecting a delivery that did not conform to the contract. Veruen approved the Disbursement Voucher despite the lack of supporting documents. Both Maderazo and Veruen signed an incomplete and undated Inspection Report, thus acting in evident bad faith. By disbursing ₱160,000.00 for non-existent tapping saddles, they caused undue injury to the LGU of Caibiran. Their concerted actions demonstrated a common design, justifying the finding of conspiracy. The Court cited Lihaylihay v. People of the Philippines and Alvizo v. Sandiganbayan in support of the conviction for irregular preparation, processing, and approval of simulated documents and payment for nonexistent projects. The affidavit of desistance by Ramirez was considered unreliable.
Main Doctrine
Public officers who disburse government funds for goods not delivered, acting with evident bad faith or gross inexcusable negligence, violate Section 3(e) of RA 3019, causing undue injury to the government.