BY CZARINA ONG KI
The Sandiganbayan Third Division has reversed its decision convicting former Isabela Governor Grace Padaca of her graft charge. However, the anti-graft court maintained its ruling for her malversation conviction.
On November 15, 2019, Padaca was found guilty of graft and malversation due to the irregular use of P25 million worth of agricultural funds back in 2006. Padaca filed a motion for reconsideration on December 2.
For her malversation conviction, she argued that the court erred in holding her an accountable officer under the law.
The anti-graft court found her guilty because she “failed to use the reasonable care and caution which an ordinary person would have used in the same situation when she was authorized the release of the P25 million to the Economic Development for Western Isabela and Northern Luzon Foundation Inc. (EDWINLFI).”
She said in her MR that it was wrong for the court to say that her act of entering into the memorandum of agreement (MOA) with EDWINLFI was without the authority of the Sangguniang Panlalawigan.
For her graft conviction, Padaca said that the court convicted her based on facts not alleged in the Information, and it was wrong to say that the provincial government “suffered undue injury in the total amount of P18 million and EDWINLFI merely returned P7 million out of the P25 million transferred to it.”
In its ruling, the anti-graft court said Padaca’s arguments against her malversation conviction were “devoid of merit.”
“The pieces of documentary evidence presented by the prosecution negate accused Padaca’s claim that her participation in the ‘application’ of the subject funds was strictly limited to her act of entering into the MOA with EDWINLFI,” the resolution said.
The court also stressed that the subsequent ratifications made by the Sangguniang Panlalawigan of the province of the MOA entered into by Padaca with EDWINLFI does not extinguish her criminal liability.
On the other hand, the court gave more weight to Padaca’s arguments against her graft conviction.
“After a second hard look at the obtaining facts in this case, coupled with the doctrinal teachings of the Supreme Court in Burgos, the Court gives its approbation to accused Padaca’s argument that to convict her of the crime of [graft] for her failure to comply with the requirements of COA Circular No. 96-003 in the selection of EDWINLFI violates her constitutional right to be informed of the nature and cause of the accusation,” the resolution said.
Padaca was initially sentenced to imprisonment of six to 10 years for her violation of Section 3(e) of R.A. 3019 or the Anti-Graft and Corrupt Practices Act and 12 to 14 years for her violation of Article 217 of the Revised Penal Code, otherwise known as Malversation of Public Funds.
Since she was acquitted of graft, the Sandiganbayan ordered that her hold departure order be lifted, while her bail for provisional liberty be returned. (Czarina Nicole Ong Ki)
———————————————–
Padaca, who was also appointed by former President Benigno Aquino III as Commission on Election (Comelec) Chair back in 2012, decided to award P25 million to EDWINLFI to have it manage a credit facility for Isabela’s rice farmers, but the prosecution faulted Padaca because of her failure to undergo public bidding for the said deal.
In the 57-page decision promulgated last year, the anti-graft court said that Padaca signed the MOA with EDWINLFI on January 8, 2006 – back when the Sangguniang Panlalawigan of Isabela has not yet issued a resolution granting her authority to enter into such an agreement.
The SP resolution was issued only on January 31, 2006 – 23 days after the signed MOA with EDWINLFI.
The P25 million released by the province to EDWINLFI was part of the P35 million that the former loaned from the Development Bank of the Philippines (DBP) under a “hold-out deposit loan.”
This meant that the loan was guaranteed by the savings deposit maintained by the provincial government with the DBP. The provincial accountant of Isabela said the loan was paid by the province 90 days after the release, which meant that the P25 million was already deducted by the DBP from the savings deposit of Isabela.
“Based on the evidence submitted by the prosecution, EDWINLFI was only able to return P7,000,000 out of the P25,000,000 that it received from the Province of Isabela, leaving a balance of P18,000,000,” the decision revealed. “Thereafter, the said foundation did not return any amount to the Provincial Government of Isabela.”
The anti-graft court said that the province undoubtedly suffered undue injury in the total amount of P18 million since the amount of P25 million was already deducted by the DBP from its savings deposit.
Both the decision last year and the resolution dated July 23 was written by Presiding Justice Amparo Cabotaje-Tang with the concurrence of Associate Justices Bernelito Fernandez and Ronald Moreno.
