'\ , REPUBLIC OF THE Sandiganbayan Quezon City

PEOPLE OF THF HILIPPINES, CRIMINAL CASE NO. 24718 FOR: Violation of Section 3(e) of R.A. Plaintiff, No. 3014, as amended

CESAR B. SULON , SANDOVAL, j., Chairman YOLANDA T. G - ElA and DIAl -BAlDOS, J., ARNO S. MADRIGAL, MARTI RES,J.,

PROMULGATED: ___~~_~~J

~

Municipal Mayor Cesar B. Sulong, Municipal Treasurer Yolanda T. Galeza and unicipal Planning and Development Coordinator (MPDC) Arno S. adrigal, all of Lapuyan, , were charged with Vi lation of Section 3(e) of R. A. No. 3019, otherwise known as the nti-Graft and Corrupt Practices Act, couched in an Amended Information1 the accusatory portion of which reads:

'Th t on or about 16 January 1989, and for sometime prior and subsequent thereto, in Lapuyan, Zamboanga del Sur, Philippines, and within the jurisdictioJ1 of this Honorable Court, the accused CESAR B. SULONG, igh ranking public official, he being then the Municipal Mayor of Lapuyan; while YOLANDA T. GALEZA, she being then the Municipal Treasurer, and ARNO S. MADRIGAL, he being then the Municipal Planning and Development Coordinator, both of the said town, are low 'P#--1i4 /criminal case no. 247/8 Ip.p. vs.sulong, et. al. /decision IPage 2

ranking public officers, while in the performance of their respective official functions and committing the offense in relation to their office, conspiring, confederating and helping one another, and with grave abuse of authority, did then d there, willfully, unlawfully and feloniously cause undue injury to the Municipality of Lapuyan by causing the payment of P53,855.00 for the fencing of the municipal I t despite the fact that the said project was not prosecuted in accordance with the program of work resulting in the fact that when finished, the total cost thereof was only P37,255.00 to the damage and prejudice of the municipality in the sum of P16,600. 00

After the filing of the original information with this Court on July 6, 1998, a Hol Departure Order2 was issued against all the accused on July 13, 1998. The proceedings thereafter were held in abeyance following the R solution3 of this Court of July 30, 1998 which raised the point that the accused were charged of violation of Section 3(g) of R. A. No. 3019 while the charges in the information apparently referred to Secti n 3(e) of the same law. Seasonably, the prosecution filed a Manife tation and Ex-Parte Motion to Admit Amended Infromation4 an mended InformationS on February 19, 1999. In a Resolution6 dated March 15, 1999, the Court granted the motion and admitted the ame ded information.

Subseque tly, arraignment was deferred in view of the filing by the accused of a Motion with Leave of Court to Reinvestigate, but with the denial of the said motion, arraignmentS proceeded on January 12, 2000, wherein accused Cesar B. Sulong and Arno S. Madrigal both entered a plea of not guilty. When arraigned on May 30, 2002, accused Voland Galeza likewise entered a plea of not guilty. Pre- Trial9 was held n March 15, 2000, after which trial ensued.

2 [bid, page 22 ~~~J 3 Ibid, page 27 4 Ibid, page 38 5 Ibid, page 43 6 Ibid, page 46 7 Ibid, page 53 8 Ibid, pages 91 to 92 9 Ibid, page III /criminal case no. 24 18 Ipp. vs.sulong, et. al. Idecision IFage 3

1. Charles Bulac10 testified that he has been employed by the Commission on Audit (COA), Regional Office No. IX since 1983 and was designated as Technical Audit Specialist in November 1991. By virtue of COA Regional Office Order No. 91-000012 dated June 6, 1991, a Special Audit Team was constituted, of which he was a member, to conduct a comprehensive audit on the accounts and operations of the Municipality of Lapuyan, Zamboanga del Sur. After conferring with the team leader, Clydeline Quinones, at the Provincial Auditor's Office in City regarding the conduct of the inspection on the rojects implemented by the Municipality of Lapuyan for the years 1988, 1989 and 1990, he secured copies of the disbursement v ucher, purchase request, purchase order, inspection report and other pertinent documents. The witness identified the reproduced copie of the Inspection Report, Purchase Request and Time Book and p. yroll covering the fencing of the municipal lot at Lapuyan, Zamboanga del Sur.

After examination of those documents, the team coordinated with the Municipal Mayor, Municipal Treasurer and the Municipal Planning and evelopment Coordinator for the conduct of the inspection. It was only Municipal Planning Development Coordinator Arno Madrigal who came with them.

The projec s inspected on July 9, 1991 included the fencing of the municipal lot, the construction of the electric box, the repairs of the municipal b i1ding, public market and the multi-purpose gymnasium. A· hortage in the amount of P16,600.00 was found in the case of th perimeter fence of the municipal lot, after they measured and computed the actual materials used in the fencing based on those found in the site and then compared them with what ~~ Plq~ /criminal case no. 247/8 Ipp. vs.sulong, et. al. Idecision IPage 4 was reported in the Purchase Order, Inspection Report and other pertinent documents.

In the Summary Report they prepared, Purchase Order No. 23 dated February 2 , 1989 was found to be in order and no shortage was found. Under Purchase Order No. 16 dated january 6, 1989, the municipality purc ased 2,500 pieces of four inches concrete hollow blocks in the a unt of P8,750.00 but upon inspection, only 1,298 pieces amounting to P4, 515 were found, thereby resulting in a shortage of P4, 235.00. Under Purchase Order No.5 dated january 9, 1989, the munici ality purchased 2,000 pieces of 6 inches concrete hollow blocks amounting to P8,000.00 but during the ocular inspection, no 6 inches concrete hollow blocks were found. Finally, under Purchase rder No. 26 dated March 6, 1989, the municipality again purchased 35 bags of cement, 4.5 cubic meters of gravel, 4 cubic meters of river sand, 450 pieces of four inches concrete hollow blocks, 20 pieces of no. 13 mm def. bars, 1.5 kilograms of no. 16 tie wires, 8 kilograr s of 2 Y2 c.w. nails, with the aggregate amount of P6,640.00 but uring the inspection, only 55 bags of cement were found, thereby creating a shortage of P4, 365. Under the three purchase orders, t e aggregate shortage amounted to P16, 600.

On cross- xamination, the witness explained that although he was not an auditor, he became part of the audit team mainly because the inspection itself required the technical expertise of a civil engineer. He ide tified the Inspection Report (Exhibit "0-2") dated january 10, 19 9, prepared by Victor Apostol, MGOO; Arno S. Madrigal, MPDC; Lourdes Lampayan, Senior Rev. Coil. Clerk; and Yolanda T. Galeza, the Municipal Treasurer, for the purchase of 2,000 pieces of concrete hollow blocks in the unit price of P4.00 and amounting to P8,O 0.00 and this inspection report exhibited that the materials stated therein were delivered and supposed to have been inspected by the signatories thereat on the date appearing thereon. He also identified the Purchase Request (Exhibit "0-5), showing that

there was a reques l for the purchase of 2,000 pieces of hollow blocks, rtivp;' (1) /criminal case no, 24718 IFP. vs.sulong, et. af. Idecision IPage .5 which was appro ed by Victor Apostol, the OLG and accused Mayor Cesar Sulong.

The witness also identified Exhibit "E-4" which is the Purchase Order dated ja uary 10, 1989 wherein no requesting officer was stated, but only as recommended by the accused. He further identified Exhibit "H-4", purchase order dated january 16, 1989 for 2,500 pieces of 4 inches hollow blocks, out of which only 1,290 pieces were found in t e site on the day of the inspection, thereby showing a shortage of P4, 235.00. Per inspection report however, the said hollow blocks ere delivered two years earlier than the actual inspection thereof and since he inspected the fence when it was already finished, he based his computation by counting the area of the hollow blocks, then divided it by 12.5 pieces per square meter which resulted in the counting of the total quantity of hollow blocks in place. On the basis of the said computation, he concluded that 1,200 plus hollow blocks w re not utilized in the construction of the perimeter fence.

The witnes added that under Exhibit "j-5", which is the Purchase Order o. 26 dated March 6, 1989 and Exhibit "j-2", the Inspection Report, the materials were delivered on March 7, 1989. He explained that the purchase request is the document coming from the requesting offici I to be approved by the municipal mayor while the purchase order is the document that emanates from the municipal mayor to the con erned supplier. The inspection report, on the other hand, is the proof that the materials as contained in the purchase order were indeed inspected by the officials concerned. In this regard,

the witness agai 1 concluded that there was a shortage in the amount of P4, 365.00.

2. Clydelnn Quifionesll stated, among others, that she has been with the C since November 14, 1984 and was designated as State Auditor III in 1991. She recounted that after she received COA

~~'

~ /criminal case no. 24718 Ipp. vs.sulong, et. al. Idecision IPage 6

Regional Office Order No. 91-000012 dated june 6, 1991 together with an attache letter-complaint of Cecal W. Oterol, she immediately called the members of the team, namely, Edgardo Cafe, State Auditor II; Sabal Salindin , State Auditor II; Engr. Charles Bulac, Technical Audit Specialist of the COA Regional Office; jacinto Galleros, State Auditor I; Celestino Paran, State Auditor I; and Eduardo Quiranto, State Auditor I, for a planning conference, after which they proceeded to Lapuyan, Zamboanga del Sur. They summoned the municipal officials whom they required to produce documents, such as the disbursement voucher, the purchase request, purchase order and other documents attached to the isbursement voucher.

Thereafter the whole team conducted an ocular inspection on the several projects covered in the order, including the fencing of the municipal lot, and then she personally informed the municipal officials, particularly the three accused, that they would issue a memorandum co taining their observations. Upon arriving at Pagadian City, they issued Audit Observation Memorandum dated November 15, 1991 addressed to the Municipal Mayor.

It was only on March 18, 1992 when the Mayor responded through a letter addressed to her, explaining that the delay in the submission of their justification was due to the incoming local

elections. In a 5 sequent 1't Indorsement dated March 11, 1993 of the Mayor, he explained that there was a change in the program of work. When required to submit the justification for the change in the program of work the mayor no longer responded, such that the team submitted to the rovincial Auditor's Office their audit report dated january 26, 1995.

Explaining their observations and findings, the witness declared that on the basi. of the computation made by the Technical Audit Specialist, Civil E _ineer Charles Bulac, and the comparison between what appeared i t e documents and what were found on the job site upon inspection, t ey found the delivery of materials short by P16, / 600.00.~ / /', rv If''''' iK (I It/ . ;11 /criminal case no. 247/8 Ipp. vs.sulong, et. al. Idecisioll IPage 7

Upon query by the court, she stated that her participation in the audit of the r ~ect was limited to the financial findings and examination of th vouchers, and not on technical matters, and hence she could no 10 ger remember how big or how tall the subject matter of the fencing project was.

On cross-examination, the witness stated that when she went over the documents gathered from the Accounting Department of the Municipality of Lapuyan, specifically Exhibits "0" to "N", she did not find any irregul· rity on the face thereof, and it was only after they conducted an ocular inspection that she discovered the shortage.

The witness continued that during the inspection, she noticed that two portions of the wall were already destroyed even if the Certificate of Acce tance was only dated January 10, 1989. After the ocular inspection, they informed accused Arno Madrigal of their findings and invited accused Sulong for a formal conference but he was not available

She admitted that the shortage was arrived at through computation made by the Technical Inspector and the failure to see those materials at the job site at the time of inspection. She also averred that she did not see the Technical Inspector digging the ground to see if the 6 inches hollow blocks were actually used as foundation, but j st saw him computing and meaSUring~ y~ /criminal case no. 2 4 ~718 Ip.p. vs.sulong, el. al. Idecision IPage 8

The prosecution filed its Formal Offer of Evidence12 on January 4, 2002. There being no opposition from the accused, the Court issued

a Resolution13 0 February 21, 2002 admitting the following evidence, to wit:

Exhibits Description

"N COA Regional Office Order No. 91-000012 dated june 6, 1991 creating a Spec al Audit Team to conduct a comprehensive audit on the account and operations of the municipality of Lapuyan, Zamboanga del Sur for the cale dar years 1988, 1989 and 1990 composed of seven (7) memb r. headed by Clydelyn Quinones, Team Leader consisting of one (1) page

"8" Letter c mplaint addressed to Her Excellency, President Corazon C. Aquin , Malacanang, Manila dated March 15, 1991 signed by Cecal W. Oterol

"C" Audit prepared and submitted by State Auditor III, Team Leader, Comm ssion on Audit (COA), Circuit Municipal Audit Unit No. IV, , Zamboanga del Sur dated january 23, 1995

"0" Undated Disbursement Voucher No. 101-8904-276 to payment of purchase of 2,000 pieces of hollow blocks for use in the fencing of the municipal lot of Lapuyan, Zamboanga del Sur in the amount of P8,OOO.OOrecommended by Victor Apostol, noted, received supplies and property by Arno S. Madrigal, certified by Cesar Sulong and payment received by Siu Lao Store and General Merchandise

"0-1" Certificate of Acceptance dated january 10, 1989 signed by Arno S. Madrig I having accepted the articles delivered by Siu Lao Store and General Merchandise

"0-2" Inspection Report of the 2000 Concrete Hollow Blocks, 6"x4"8", delivered on january 10, 1989, jintly noted by Yolanda Galeza and jointly inspected by Victor Apostol and Lourdes Lampayan

"0-3" Cash Invoice Receipt No. 35714, dated january 10, 1989 issued by Siu Lao Store for 2000 pieces of concrete hollow blocks in the amount of P 8,000. 0

"0-4" Purchase Order NO.5 dated january 9, 1989 of 2,000 pieces of hollow blocks -ecommended by Victor Apostol, approved by Cesar Sulong and signed by Yolanda Galeza that funds for the purchase is available and the purchase order received by Siu Lao Store and General Merchandise

"0-5" Purchase Requiest No. 04 dated December 22, 1988 for the purchase of 2000 pieces of hollow blocks recommended by Victor Apostol, approved and certified as necessary by Cesar Sulong and signed by Yolanda Galeza that funds for the purchase are available

"0-6" Price Q otation dated December 27, 1988 addressed to Siu Lao Store and General Merchandise~ /;(,/ _0 _-_ )Y~j 12 Ibid, page 319 13 Ibid, page 468 /criminal case no. 24718 /pp. vs.sulong, e1.al. /decision /Page 9

Price Quotation dated December 27, 1988 addressed to Tradin signed by Yolanda Galeza for the purchase of 2000 pieces of 6"x4"x8" hollow blocks with the price quotation of P4.25 per hollow block by Mindanao Trading

Price Ouotation dated December 27, 1988 adressed to Urn Si Store and Gener~1 Merchandise signed by Yolanda Galeza for the purchase of 2000 pieces of 6"x4"8" hollow blocks by Urn si Store and Gen. Merchan dise

Abstract of Bids/Quotation for Purchase of 2000 pieces of hollow blocks from the 3 bidders, signed by Cesar Sulong, Arno Madrigal Yolan a Galeza, Jessie Imping, Daniel Ungating, Roland Lusay and Jaime Din

Disbursement Voucher No. 101-8903209 dated March 16, 1989 recomr ended by Victor Apostol prepared and noted by Arno Madrigal, upon request/direction of Cesar Sulong to payment for the purchase of variou materials and asonry works, for the use in the fencing of munici al lot, Lapuyan, Zamboanga del Sur in the amount of P7, 495,0

Certificate of Acceptance dated January 12, 1989, signed by Cesar B. Sulong, Municipal Mayor having accepted the articles delivered by Siu Lao Store and General Merchandise

Inspection Report dated January 11, 1989 of delivery of various construction materials by Siu Lao Store and General Merchandise jointly Inspected by Victor Apostol and Lourdes Larnpayan and jointed noted by Arno Madrigal and Yolanda Galeza

Cash Invoice Receipt No. 37169 dated January 12, 1989 issued by siu Lao Store and General Merchandise to the Municipality of Lapuyan, Zamboanga del sur for payment of various construction materials in the amount of P 7,495.00

Purcha e Order No. 04 dated January 10, 1989 addressed to Siu Lao Store and General Merchandise for the purchase of various constr ctions materials to be used in the fencing of municipal lot, Lapuyan, Zamboanga del Sur recommended by Victor Apostol, approved by Cesar Sulong, and signed by Yolanda Galeza that funds are ava lable for said purchase and purchase order received by Siu Lao Store alld Gen. Merchandise

Purchase Request No. 02 dated January 4, 1989 for various construction materials to be used in the fencing of municipal lot, Lapuyan, Zamboanga del Sur recommended by Victor Apostol, approved by Cesar Sulong and signed by Yolanda Galeza that funds are available for said purchase

Price Quotation dated January 6, 1989 addressed to Urn Si Store and General Merchandise signed by Yolanda Galeza for purchase of various construction materials with the price quotation of the various items by Urn Si Store and Gen. Merchandise

Price Q otation date January 6, 1989 addressed to Siu Lao Store and Gen. Merchandise signed by Yolanda Galeza for the purchase of various c nstruction materials with the price quotation of the various items by Siu Lao Store and Gen. Merchandise

Price Q otation dated January 6, 1989 addressed to Mindanao Trading signed by Yolanda Galeza for the purchase of various construction materia s with price quotation of the various items by Mindanao /' ~A /criminal case no. 24'718 Ip.p. vs.sulong. et. al. Idecision IFage 10

Abstract of Bid/Quotation for purchase signed by Arno Madrigal, Yolan a Galeza, Cesar Sulong, jessie Imping, Daniel Lingating, Roland Lusay nd jaime Din

Disbursement Voucher No. 101-890174 dated january 17, 1989 prepared by Arno Madrigal upon request/direction of Cesar Sulong recomm nded by Victor apostol to payment for the purchase of various hardware materials for use of fencing of municipal site in the amount of P2, 875,00.00, certified by Yolanda T. Galeza that adequate funds for said purchase is available approved for payment by Cesar Sulong and full ayment was received by Pagadian Manhattan Enterprises

Certificate of Acceptance dated january 12, 1989 signed by Cesar Sulong having accepted the various construction materials delivered by Pagadian Manhattan Enterprises

Cash Invoice Receipt No. Hl38 dated january 12, 1989 issued by Pagadian Manhattan Enterprises to the municipality of Lapuyan Zamb anga del Sur for the delivery of various construction materials

Purcha e Order No. 01 dated january 12, 1989 for the purchase of various construction materials addressed to Pagadian Manhattan Enterprises, approved by Cesar Sulong and signed by Yolanda Galeza that funds is available for said materials and purchase order received by Pagadian Manhattan Enterprises

Purchase Request No. 01 dated january 3, 1989 for the purchase of construction materials for use of fencing of the municipal site of the municipality of Lapuyan, Zamboanga del Ssur. Signed by Cesar Sulong and Yola da Galeza

Price Quotation dated january 3, 1989 addressed to Pagadian Manhatt Enterprises signed by Yolanda Galeza for the quoatation of purcha e of various construction materials with the price quotations of the vari us items by Pagadian Manhattan Enterprises

Price Quotation dated january 3, 1989 addressed to Zamboanga Motor Supply signed by Yolanda Galeza for the quotation of various construction materials with the price quotations of the various items by the VLT Marvic Enterprises

Price tation dated january 3, 1989 addressed to VLT Marvic Enterprises signed by Yolanda Galeza for the quotation of various construction materials with the price quotations of the various items by the VLT Marvic Enterprises

Abstract of bid/quotation for purchase of construction materials signed by Mayor Cesar Sulong, Municipal Treasurer Yolanda Galeza and MPDC Arno Madrigal

Disbursement Voucher dated March 16, 1989 prepared by Arno Madrigal pon request/direction of Cesar Sulong, Municipal Mayor, recommended by Victor Apostol to payment for the purchase of various hardware materials and masonry works for the fencing of the municipal lot, Lapuyan, Zamboanga del sur in the amount of P 7, 495.00, certified by Yolanda T. Galeza that adequate funds for said purchas is available, approved for payment by Cesar Sulong and full payment was received by Siu Lao Store and General Merchandise

Cash In (lice Receipt No. 37170 dated january 16, 1989 issued by Siu Lao StOIe to the Municipality of Lapuyan, Zamboanga del Sur for the delivery of various construction material~~ ~ of /criminal case no. 24718 /p.p. vs.sulong, et. al. /decision /Page 11

Cash Invoice Receipt No. 37170 dated January l' 6, 1989 signed by Cesar ulong, Municipal Mayor, accepting various construction materials from Siu Lao Store and General Merchandise listed in Invoice No. 37170 dated January 16, 1989 and the same were inspected and found to be in accordance with the specification stipulated under Order No. 010, dated January 16, 1989

Inspectl n Report dated January 16, 1989 stating that the delivery of the items w s within the specified approved program of work as to the quantity and quality, signed by Victor apostol, Lourdes Lampayan, Arno Madrigal and Yolanda Galeza

Purchase Order dated January 16, 1989 addressed to Siu Lao Store and General Merchandise for the purchase of various construction materials to be used in the fencing of municipal lot, recommended by Victor Apostol, approved by Cesar B. Sulong, and signed by Yolanda Galeza that f ds are available for said purchase

Purchase Request No. 010 dated January 13, 1989 for various construction materials to be used in the fencing of municipal lot, Lapuyan, Zamboanga del Sur, certified by Victor Apostol that said materials are necessary in connection with the intended project, signed by Yol nda Galeza that funds are available and approved by Cesar B. Sulong

Price otation dated January 13, 1989 addressed to Mindanao Tradinq signed by Municipal Treasurer Yolanda Galeza with the price quotations of the various items by Mindanao Trading

Price Qu tation dated January 13, 1989 addressed to J & K Food Mart and Gen. Merchandise signed by Municipal Treasurer Yolanda Galeza with the price quotations of the various items by J & K Food Mart and Gen. Merchandise

Price Quotation dated January 13, 1989 addressed to Siu Lao Store and Gen. erchandise signed by Municipal Treasurer Yolanda Galeza with the prce quotations of the various items by Siu Lao and Gen. Merchandise

Abstract of Bids and Quotation dated January 13, 1989 signed by Arno Madrigal, MPDC, Yolanda Galeza, Municipal Treasurer, Cesar B.Sulong, Municipal Mayor, Jessie Imping, PTA President, Daniel Lingating, SB Member, Roland Lusay, SB Member and Jaime Din, Representative Religious Sector

Check No. 119515 in the amount of P4,495.00 dated March 29, 1989 with name of payee Siu Lao Store and Gen. Merchandise signed by Cesar S long and Yolanda Galeza

Disbursement Voucher No. 101-8903196 dated January 19, 1989 prepared by Arno S. Madrigal, upon Request/Direction of Cesar B. Sulong to payment for the purchase of 2500 pcs. 4"x 8"x 16" CHB (Hollow Blocks) for the use in the fencing of the municipal lot of Lapuyan, Zamboanga del Sur in the amount of P 8,750.00

Certificate of Acceptance dated January 18, 1989 stating that the 2500 pieces of hollow blocks was delivered by Siu Lao Store and Ged. Mercha dise, inspected by Victor Apostol, Arno Madrigal, Yolanda Galeza a d Cesar B. Sulong and at the same were found to be in accordance with the specification stipulation under Purchase Order No. 016 date January 19, 1989

Inspectiol Report dated January 19, 1989 of the 2500 pieces of 4" x 8~ z5' /criminal case no. 24 18 /pp. vs.sulong, et. al. /decision /Page 12

16" CHB hollow blocks delivered on January 18, 1989, inspected by Victor Apostol and Lourdes Lampayan, and noted by Arno Madrigal and t_ Cesar B. Sulong

Official Receipt No. 36229 dated January 19, 1989 issued by Siu Lao Store for 2500 pieces of 4" x 8" x 16" CHB hollow blocks in the amount of P8,750.00

Purchase Order No. 016 dated Janaury 16, 1989 of 2500 pieces of 4" x 8" x 16" CHB hollow blocks, recommending approval by Victor Apost I, approved by Cesar sulong and signed by Yolanda Galeza

Purchase Request No. 013 dated January 10, 1989 for the purchase of 2500 pieces of 4" x 8" 16" CHB hollow Blocks to be used in the fencing of the municipal lot signed by Victor S. Apostol and Yolanda Galeza and approved by Cesar Sulong

Price otation dated January 13, 1989 addressed to Mindanao Trading, signed by Yolanda Galeza and Cesar Sulong

Price uotation dated January 13, 1989 addressed to Siu Lao Store and Gen. Merchandise signed by Yolanda Galeza and Cesar Sulong

Price Quotation dated January 13, 1989 addressed to LimSi Store and Gen. Merchandise signed by Yolanda Galeza and Cesar Sulong

Abstract of Bids/Quotation signed by Arno Madrigal, Yolanda Galeza and Ce ar Sulong

Check -. 119504 dated March 15, 1989 in the amount of P8,750.00 addressed to Siu Lao Store and Gen. Merchandise, and signed by Cesar Sulong and Yolanda Galeza

Disbursement Voucher No. 211-890670, dated April 12, 1989 prepared by Arno Madrigal, upon request/direction of Cesar B. Sulong to payment for the purchase of hardware materials for the use in the renovation of the municipal hall in the amount of P6,640.00.00

Inspectlo Report for the delivery of various construction materials by Siu Lao Store and Gen. Merchandise, jointly inspected by Victor Apostol and Lourdes Lampayan and noted by Cesar Sulong and Yolanda Galeza

Certificat of Acceptance dated March 2, 1989 signed by Mayor Cesar B. Sulong

Official Receipt No. 39256 dated March 1, 1989 issued by Siu Lao Store to the L cal Government of Lapuyan, Zamboanga del Sur for the payment of various construction materials

Purchase Order No. 23, dated February 28, 1989 addressed to Siu Lao Store and Gen. Merchandise for the purchase of various construction materials recommended by Victor Apostol, approved by Cesar Sulong and signed by Yolanda Galeza that funds are available for the purchase of said r aterials

Purchase Request No. 22 dated February 20, 1989 for various construction materials to be used in the fencing of the municipal lot of Lapuyan, Zamboanga del sur, certified by Victor Apostol that said materials are necessary in connection with the intended project assigned by Yolanda Galeza that funds are available and approved by Cesar B.. long

Price Qllotation dated February 22, 1989 addressed to Siu Lao Stor~~ , r"'·· (~ /criminal case no. 2471( /p.p. vs.sulong, et. al. /decision /Page 13

Price uotation dated February 22, 1989 addressed to J & K Foodmart and Gen. Merchandisesigned by Yolanda Galeza

Price uotation dated February 22, 1989 addressed to Mindanao Trading Signed by Yolanda Galeza

Abstract of Bids/Quotation dated February 24, 1989 stating therein the various price quotations of various construction materials of Mindanao Trading, J & K Foodmart and Siu Lao Store signed by Arno Madrigal, Yolanda Galeza, Cesar Sulong, Jessie Imping, Daniel Ungating, Roland Lusay and Jaime Din

Disbur ement Voucher No. 211-890671 dated april 27, 1989 prepared by Ar 0 Madrigal, upon request/direction of Cesar Sulong to payment for the purchase of hardware materials for the use in the extension of the Municipal Hall/Terrace of Lapuyan, Zamboanga del Sur in the amou t ofP6,640.00, signed by Cesar Sulong and Yolanda Galeza and payment received by representative of Siu Lao Store and Gen. Mercha dise

Certificate of Acceptance dated March 7, 1989 signed by Cesar B. Sulong of the various articles delivered by Si Lao Store and Gen. Mercha dise listed in Invoice No. 37971 dated March 7, 1989

Inspected Report of delivered construction materials on March 7, 1989 signed by Cesar Sulong, Lourdes Lampayan, Arno Madrigal and Yoland Galeza

PCIB Check No. 119558 dated June 1, 1989 in the amount of P6, 640.00 in the names of Cesar B. Sulong and Yolanda Galeza

Official Receipt No. 37971 dated March 7, 1989 issued by Siu Lao Store, for various construction materials in the amount of P6,640.00

Purcha e Order No. 026 dated March 6, 1989 for various construction materials, approved by Cesar Sulong and signed by Yolanda Galeza that funds were available for the purchase

Purchase Request No. 24 dated February 20, 1989 for the purchase of various construction materials for the fencing of the municipal lot certified y Yolanda Gaieza and approved by Cesar B. Sulong

Purchase Request No. 24 dated February 20, 1989 for the purchase of various c nstruction ate rials to be used in the fencing of the municipal lot of Lapuyan, Zamboanga del Sur certified and approved by Cesar Sulong a d signed by Yolanda Galeza that funds available for the purpose

Price .uotation form dated March 23, 1989 addressed to Mindanao Trading signed by Yolanda Galeza for the purchase of various constr ction materials with the price quotations of the various items offered by Mindanao Trading

Price Quotation form dated March 23, 1989addressed to Um Si Store and Gen. Merchandisesigned by Yolanda Galeza for the purchase of various items with the price quotations of the various items offered by Um Si Store and Gen. Merchandise

Price Q olation form dated March 23, 1989 addressed to Siu Lao Store and Gel\. Merchandise signed by Yolanda Galeza for the purchase of various construction materials with the price quotation of the various items offered by Siu Lao Store and Gen. Merchandise , '.~. l1luN 7(1 qr-' <1'--'" () J1 /criminal case no. 24718 Ipp. vs.sulong, et. af. Idecision IPage 14

Abstract of Bids/Quotation dated February 27, 1989 stating therein the various quotations of various construction materials of Mindanao Trading, Lim Si Store and Siu Lao Store signed by Arno Madrigal, Yolanda Galeza, Cesar Sulong, Jessie Imping, Daniel Lingating, Roland Lusay and Jaime Din

Time Book and Payroll for the period of February 1-15, 1989 with names and signatures of laborers who worked on the concrete fencing of the lunicipal site of Lapuyan, Zamboanga del Sur, signed by Osias Medi a, Sr., Cesar Sulong and Yolanda Galeza

Summary of Payrolls for February 1-5, 1989signed by Cesar Sulong and Yolanda Galeza

Listin. of names of laborers who worked at the project (fencing of the municipal lot of Lapuyan, Zamboanga del Su) submitted and recommended by Osias Median, Sr., and approved by Cesar Sulong

Accomplishment Report dated February 15, 1989 stating that the work (fencing of the municipal lot) had been accomplished and complied in 13 days from February 1-15, 1989, signed by Cesar B. Sulong

Time Bo k and Payroll for the period February 16-28, 1989 with the names and signatures of laborers who worked at the concrete fencing of the municipal site of Lapuyan, Zamboanga del Sur, signed by Osias Medina Sr., Cesar B. Sulong and Yolanda Galeza

Summary of the Payrolls for the period May 16 to May 24, 1989 signed by Ces r B. Sulong and Yolanda Galeza

Anoth r. ummary of Payroll for the period February 16 to February 28, 1989 Signed by Cesar B. Sulong and Yolanda Galeza

Listing of names of 6 laborers who worked at the project (fencing of the mu icipal lot of Lapuyan, Zamboanga del Sur) submitted and recomr ended by Osias Medina Sr. and approved by Cesar B. Sulong

Accomplishement Report dated February 28, 1989 stating that the work (fencing of the municipal lot has been accomplished andco pleted in 11 days from February 16-28, 1989, signed by Cesar B. Sulong

Time Bo k and Payroll for the period April 1-15, 1989 with the names and signatures of laborers who worked at the concrete fencing of the municipal site of Lapuyan, Zamboanga del Sur, signed by Osias Medina Sr., Cesar B. Sulong and Yolanda Galeza

Summary of the Payroll for the period April 1-15, 1989 signed by Cesar Sulong and Yolanda Galeza

Accomplishment Report dated April 19, 1989stating that the work (fencing of the municipal lot) had been accomplished in 15 days from April 1-·15, 1989 signed by Cesar B. Sulong

Listing of names of 11 laborers who worked at the project (fencing of the municipal lot) of Lapuyan, Zamboanga del Sur, submitted and recommended by Osias Medina, Sr., and approved by Cesar B. Sulong

Time Bo k and Payroll for the period May 16-24, 1989 with the names and signatures of laborers who worked on the concrete fencing of the munici al site of Lapuayn, Zamboanga del Sur, signed by Osias Medina, Sr., Cesar B. 5ulong and Yolanda GaleZ~ /QiiJ /criminal case no. 247/8 Ip.p. vs.sulong, et. al. Idecision IPage 15

Listin of names of 8 laborers who worked at the project (fencing of the unicipal lot of Lapuyan, Zamboanga del Sur submitted and recommended by Osias Medina, Sr., and approved by Cesar B. Sulong

Acco plishment Report dated May 24, 1989 stating that the work (fencing of the municipal lot) had been accomplished and completed in 7 days f r the period May 16-24, 1989

Memorandum of Clydelyn P. Quinones, State Aditor III, Commission of Audit, Team Leader of the Audit Team addressed to the Municipal Mayor of Lapuyan, Zamboanga del Sur regarding the audit observations of the A dit Team about the fencing of the municipal lot consisting of three (3) pages

Name and signature of Clydelyn P. Quinones at the bottom of page 3 of the Memorandum

Letter to the Circuit Auditor CMAU IV, Margosatubig, Zamboanga del Sur dated March 18, 1982 of accused Cesar B. Sulong, Municipal Mayor

1st In orsement dated March 11, 1993 of accused Cesar B. Sulong, Munici al Mayor

Letter dated November 15, 1991 for the Municipal Mayor, Lapuyan, Zamboanga del Sur from Ms. Clydelyn P. Quinones, State Auditor III. Team Leader, Commission on Audit (COA)

Letter dated March 19, 1993 addressed to the Municipal Mayor, Municipality of Lapuyan, Zamboanga del Sur signed by Clydeline P. Quinones, State Auditor III, Team Leader

Secon Tracer dated June 22, 1993 addressed to the Municipal Mayor, Municipality of Lapuyan, Zamboanga del Sur, sent by Clydeline P. Quinones, State Auditor III, Team Leader, Commission on Audit (COA)

Third Tracer dated September 11, 1993 to accused Mayor Cesar B. Sulong, Municipality of Lapuayn, Zamboanga del Sur sent and prepared by Clydeline P. Quinones, State Auditor III, Commission of Audit (COA)

Fourth Tracer dated November 27, 1993addressed to the accused Munici al Mayor, Lapuyan, Zamboanga del Sur prepared and sent by Clydeline P. Quinones

COA Rep rt, page 17 with total payment of materials P 47, 895.00 and labor f r 5,960.00

COA Report, page 18 re: short delivery of 4" and 6" thick concrete hollow bl cks and other construction materials for P 16,600.00

1. Accused Yolanda Galeza narrated that as the Municipal Treasurer of Lapu an, Zamboanga del Sur from 1986 to 1995, she supervised the co lection of taxes in the municipality, took custody o~ ~

" /1 /criminal case no. 24718 Ipp. vs.sulong, et. al. Idecision IPage 16

all the funds, p iet the salaries and other expenditures incurred, and rendered a report on the financial status of the municipality. She recalled that s etime in the years 1988 to 1990, the local government of La uyan, Zamboanga del Sur undertook a number of infrastructure pr ~ects such as the construction of an "Intake Box", the fencing of the municipal lot, improvement of the gymnasium, improvement and rehabilitation of the municipal building and the renovation of the public market. She identified Exhibits "E" to "H" which pertained t the fencing of the municipal lot, as well as her

signatures ther 0 certifying that funds were available to pay the disbursement. It was the municipal mayor who approved the disbursement voucher. She likewise stated that the amount of P8,000.00 covered by Exhibit "D", and those covered by Exhibits "E",

She explained that certain procedures were followed in making expenditures. Wit respect to supplies or materials to be procured by the local government, there must be a purchase request, canvass and abstract of bids, purchase order, inspection report and certificate of acceptance, voucher, invoice and lastly, payment. She needed to sign the purchase request as to availability of funds. The municipal treasurer would then invite suppliers to give their quotations. After the abstract of bids here the lowest bidder would be determined, the purchase order would be issued and she would sign this to show availability of funds and to guarantee that the expenditure can be paid by the municipality. After delivery of the materials by the supplier, inspection would be conducted, and then the certificate of acceptance would be issued. The witness reiterated that her only participation was to affix her signature on the disbursement voucher to certify the availability of funds and to pay the voucher.

On cross-examination, the witness declared that she sawall the materials that were delivered, consisting of 2,500 pieces of 4 inches concrete hollow I cks and 2,000 pieces of 6 inches concrete hollow

blocks. She had 110 idea how the project was implemented and cam~ ~. {)(iJ /criminal case no. 24778 Ipp. vs.sulong, et. aJ. Idecision IFage 17 to know of the shortage only when this case was filed, by which time, she was no longer with the government.

2. Accus d Arno S. Madrigal,14 the Municipal Planning and Development C ordinator of Lapuyan, Zamboanga del Sur since 1986, recounted that in 1998 to 1990, several projects were undertaken by the municipality, like the construction of the perimeter fence which he supervised under a program of work provided by the Provincial Engineer's Offic , renovation of the municipal hall, extension and construction of t e terrace in the municipal hall, construction of toilets, and construction of a multi-purpose building, waiting shed and septic tank.

The perimeter fence, which was about eight feet high, depending on the terrain of the riverbank, was constructed on a municipal lot with a total land area of 6,700 square meters located at Sitio Guingoran Ba , , Lapuyan.

During the ocular inspection by the Audit Team, it was only Engr. Charles Bulac who looked at the fence pointed out to him while Clydeline Quino es stayed at the municipal treasurer's office. He showed Engr. Bulac that the perimeter fence was already finished and that the hollow blocks could no longer be seen since they were already cemented. The 2,000 pieces of 6 x 4 x 8 concrete hollow blocks were used as the foundation of the perimeter fence which they had to strengthen since the area was near the creek where the soil was soft and muddy_ He declared that Engr. Bulac could not have possibly known the number of missing hollow blocks because he merely looked at the fence and did not measure its height and width, and did not also excavate the perimeter fence to look for the allegedly lost hollow blocks.

The testimony of this witness was adopted as evidence for accused Yolanda Galeza and accused Cesar Sulong. In addition, Atty_

~. 'fkI /criminal case no. 2471 ~ Ip.p. vs.sulong, et. al. Idecision IPage 18

Redelosa, counsel for accused Sulong, was allowed to propound additional direct examination questions. Thus, on additional questioning on behalf of accused Sulong, accused Madrigal admitted that his office, the MPOC, was responsible for the preparation of Exhibits "0" to "H". He also maintained that before they prepared the disbursement voucher, it has been their policy to examine the program of work first. They also prepared the purchase request and conducted a ca vass from three possible suppliers, after which they prepared the abstract of bids. They then prepared the purchase order and the inspection report and lastly, the acceptance ..

The witness further confirmed the signature affixed above the name "Cesar Sulong" on the documents as that of accused Mayor Cesar Sulong, and added that before the accused signed a document, he would first ask uestions from him (the witness).

On cross- x mination, the witness stated that there was no exit conference after t e inspection, and the audit team did not inform them about the unaccounted pieces of hollow blocks. The Audit Team did not find the 2000 pieces of 6 inches hollow blocks mainly because they did not excavate the foundation of the fence, and that if only they had done so, th y would have found them. The team did not even make any measurement of the perimeter fence which was already plastered with cement.

In view of the failure of the accused to file any formal offer of documentary evid ce, the Court issued an Order1s dated February 18, 2008 declaring suc right as waived. The Court further ordered the parties to file their respective memoranda.

For the calendar years 1988, 1989 and 1990, the Municipality of Lapuyan, Zamboanga del Sur, embarked on several infrastructur~U7\4.V~/ .~:

~ /criminal cas'e no. 24718 Ip.p. vs.sulong, et. al. /decision IFage 19 projects, one of which was the construction of the perimeter fence of the municipal lot. This particular project became the subject matter of a complaint dated April 11, 1991 that led to the conduct of an audit of the accounts and operations of the Municipality of Lapuyan for the years 1988, 1989 and 1990. The audit team was compqsed of State Auditor IV Clydeline Quinones as leader and Senior Technical Audit Specialist Charles Bulac and four other State Auditors as members.

After gat ering the pertinent documents like disbursement voucher, purchase request, purchase order and other documents attached to the isbursement voucher and all the payments made to the projects, an after conducting an ocular inspection of the project, the audit team discovered a shortage in the quantity of construction materials, tabulated as follows:

Purchase Units Amount Paid Upon actual Amount of Order No. Purchased inspection Shortage 16 dated Jan. 2,500 pcs of P8,750.00 1,295 pcs P4,235.00 16, 1989 4" ClIB 5 dated Jan. 9, 2,000 pcs. of P8,OOO.OO None P8,OOO.00 1989 6" CHB 26 dated Cement, P6,640.00 35 bags of P4,365.00 March 6, 1989 gravel, sand, cement hollow blocks P2,275.00 TOTAL P16,600.00 SHORTAGE

The above deficiencies were reported in an Audit Observation Memorandum which was referred to accused Mayor Sulong for comment. Findi 9 such comment submitted on March 11, 1993 to be unsatisfactory, the Team submitted its report to the Provincial Auditor on August 6, 19 3. This same Audit Report became the basis of the filing of the charge in the instant case.

"' \ The primordial issue to be resolved is whether there was truly shortage in the delivery of materials purchased for the construction of the perimeter fence of the municipal lot, that would constitute a violation of Section 3 (e) of R.A. No. 3019 and warrant the conviction of the three accus =.dthereunder. / ~/rIJ.,/;/ /criminal case no. 24718 /pp. vs.sulong, et. 01. /decision /Page 20

The prosecution tried to establish such shortage through the Audit Report submitted by the Audit Team that audited the projects of Lapuyan for the years 1988, 1989, and 1990, including the construction of the perimeter fence of the municipal lot. The Audit Report on the q estioned project, in turn, was based on the inspection conducted by Technical Audit Specialist Engr. Charles Bulac. As already illustrated above, Engr. Bulac found a shortage in the materials delivered in the total amount of P16,600.00.

In their 0 n testimonies in court, accused Galeza and Madrigal disputed those findings of Engr. Bulac, arguing that it was unlikely for him to have accurately counted the missing hollow blocks, simply because he merely looked at the fence and did not measure its height and width, and not excavate it in order to verify if all the hollow blocks purchase ere intact.

Specifically is statement that he did not find the 6" hollow blocks was rebutted by accused Madrigal who categorically stated in court too that Eng". Bulac did not dig or excavate the ground, and that had he done so, he would have found the missing 6" hollow blocks that were used as foundation for the perimeter fence.

This asserti n of the accused was not rebutted by the prosecution by further proof. It is significant too that Engr. Bulac admitted in his testimony that he merely based his computation not on the actual counting of the hollow blocks but on past experience and the standar engineering practice. The admission likewise of Clydeline Quinones that she had no personal knowledge of any shortage in the c struction materials delivered and that she merely relied on the comp tation of Engr. Bulac and the testimony of others, is much of a telli g statement that affirms doubts cast on the findings of Engr. Bulac. Basic is the rule that "a witness can testify only to those facts which he knows of his personal knowledge; that is, which ~p;; 'fkI /criminal case no. 24718 Ipp. vs.sulong, et. al. Idecision IFage 21 are derived fr m his own perception."16 Any other testimonial evidence outside the witness' personal knowledge is hearsay and downright inadmissible. Hearsay evidence carries no probative value whatsoever.

Moreover, the declaration of Clydeline Quinones that her participation in th audit was limited to the examination of documents and that she did not find any irregularity with the vouchers and other documents subr itted to her office boosts the lack of basis of the charge against the accused.

Thus, a pragmatic evaluation of the evidence undeniably shows that the allegati n of undue injury to the government in the amount of P16,600.00 has not been sufficiently established. As succinctly expressed in Llorente vs. Sandiganbayan,I7 it is required that the undue injury be 'pecified, quantified and proven to the point of moral certainty.

To warrant the conviction of the accused for the offense of Violation of Section 3 (e) of R.A. No. 3019, the prosecution is burdened to prove the following essential elements thereof:

1. The accused must be a public officer discharging ad inistrative, judicial or official functions; 2. He must have acted with manifest partiality, evident bad faith or gross inexcusable negligence; and 3. That his action caused any undue injury to any party, including the government, or gave any private party unwarranted benefits, advantage or preference in the discharge of his functions.Is

~~. ------{Jil 16people oftbe Philippines vs. Renato Bautista, Arman Hernandez, Amold Mendoza & Jess Sabarin,fIU''r G.R. No.1 J 1149. September 5, 1997.

170.R.No.122166, Manit II, 1998 18Ponce De Leon vs. Sanlliganbayan, 187 seRA 745 (G.R.Nos. 89785-98, June 25, 1990) /criminal case no. 24718 Ip.p. vs.sulong, et. af. Idecision IFage 22

Although the Information did not allege that the accused acted either with evident bad faith, manifest partiality or gross inexcusable negligence, an grave abuse of authority was alleged instead, the Court shall non _t eless dissect the participation of the accused in the act complained of, or their actuations, to determine i.f they were indeed imbued ith evident bad faith, gross inexcusable negligence or manifest partiality, so as to have inflicted undue injury to the government.

In the case of accused Galeza whose participation in the crime charged consisted in signing the disbursement voucher and paying the supplier, the Co rt finds that she merely relied on documents submitted to her r f1ecting the delivery of the materials purchased. As a municipal treas rer tasked with the function of safeguarding the coffers of the municipality, it was sufficient for her to have relied on the documents s mitted to her which she found to be complete with supporting documents upon examination thereof. Let it be stated for emphasis that sh affixed her signature on the disbursement vouchers and other docu ents only to certify to the availability of funds and that such expendit re could be paid by the municipality.

On the ther hand, accused Municipal Planning and Development Coordinator Arno Madigal, supervised the construction project under a Program of Work prepared by the Provincial Engineer's Office of Zamboanga del Sur and which he merely implemented. He likewise affixed his signature on the disbursement vouchers, certificates of acc ptance, inspection reports and purchase orders (Exhibits "0" to " -9", "H" to "H-9" and "I" to "1_9") only after the materials were d livered and actually used. It is noteworthy too that two other perso s, namely, Victor Apostol and Lourdes Lampayan, jointly inspected t e materials and attested that they were indeed delivered and utiliz d in the fencing project.

As regards the allegation in the information that the project was not prosecuted in accordance with the program of work, the Court finds that such claim has no leg to stand on. Notably, the prosecution ("'1 d . /criminal case no. 24718 Ip.p. vs.sulong, et~ af. Idecision IPage 23 did not present t e program of work which even Engr. Charles Bulac had not seen, r even formally offered it as evidence, which failure thus ill-equips the Court to state accurately that the implementation of the project was not in accordance with such program of work. At most therefore, that remains a bare allegation bereft of pr~)Qf.

The Honora Ie Supreme Court has stressed time and again that allegations must be proven by sufficient evidence.19 Bare allegations which are not s pported by any evidence, documentary or otherwise, sufficient to support her claim fall short to satisfy the degree of proof needed.20

With regar to accused Mayor Sulong whose failure to explain the missing materials was the basis of his indictment, the Court finds material the testi ony of co-accused Arno Madrigal that before the accused mayor affixed his signature on the several documents involved in this case, he personally explained to him each particular document. To our mind, that somehow reflects the care that accused Sulong exercised in ensuring the wise expenditure of the municipality. Thus, his defense of simple denial, contained in his explanatory letter to the COA, while admittedly weak, should nevertheless be accorded credence and sig ificance where the case for the prosecution is itself frail. Well settle is the rule that in all criminal cases, the prosecution must not rely on the weakness and frailty of the evidence for the defense but on the strength of its own.21

From the above discussion, it can be clearly gathered that the three modes of co mitting the offense under Section 3 (e) of R.A. No. 3019 cannot be a reciated against all the accused. Certainly, evident bad faith, which connotes a manifest, deliberate intent on the part of the accused to do wrong or cause damage,22 has not been established. Neither has partiality, which is synonymous with "bias" which "excites~q; 19 Recaro vs. Embisan, 2. eRA 598 (1961) 20 Carmela Cuizon y Montalban vs. Court of Appeals, G.R. No. 102096. August 22, 1996 fdql 21 People of the Philippinvs ys. Reynaldo Ibarra y Vergara, G..R. No. 107837, June 27, 1994. 22 Dugayon v. People, GJ . No. 147333, August 12,2004,436 SCRA 262,272-273; Sidro v. People, G.R. No. 149685, April n, 2004, 428 SCRA 182, 194 /criminal case no. 24718 Ip.p. vs.sulong, et. aJ. Idecisioll IPage 24 a disposition to see and report matters as they are wished for rather than as they are,23 been shown to exist. Lastly, gross inexcusable negligence, which is characterized by the want of even slight care, or acting or omitting to act in a situation where there is a duty to act willfully and intentionally, with a conscious indifference to consequences as far as other persons are concerned,24 has not been proven either.

On the ba. i of all the foregoing, the Court finds no sufficient rationalization t stablish the criminal liability of all the accused for the crime charg d. The following behest enunciated in People vs. Berroyd5 finds eaning and application herein:

"Section 14(2), Article III of the 1987 Constitution provides that 'in all criminal prosecutions, the accused shall be presumed innocent until the contrary is proved ... ' Given this presumption, the State must thus prove the guilt of the accused beyond reasonable doubt, and this presumption prevails unless overturned by competent and credible pro f The State is required, in the discharge of the burden imposed upon it, to establish by proof all the essential elements of the crime with which the defendant is charged in the indictment, and to establish beyond reasonable doubt that the accused is guilty of the said crime. In ['he absence of such degree of proof of the defendant's guilt, he is entitled to an acquittal, regardless of whether his moral character is good or bad. It is not sufficient that the preponderance or the weight of the evidence points to the guilt of the accused, x x x as evidence s owing a mere possibility of guilt is insufficient to warrant CiI conviction".

While guilt should not escape, innocence should not suffer.26 The accused must then be acquitted even though their innocence may be doubted.27

WHEREFO E, for failure of the prosecution to prove beyond reasonable doubt the guilt of accused CESAR SULONG, YOLANDA

23 Dela Chica vs. People o[the Philippines, G.R.No. 144823, December 8, 2003 ~ 24 Mendoza-Al'ce vs. Ombuusman (Visayas), 380 SCRA 325 (2002) fJJtl( 25 G.R. No. 122487, Dece lIber 12, 1997 26 People vs. Baldevieso, l JR .. No. 127315, October 8, 2002 27 People vs Sadie, 149 St Hi\. 240. /criminal case no. 247/8 Ipp. vs.sulong, et. at. Idecisioll IFage 25

GALEZA and AR 10 MADRIGAL for Violation of Section 3(e) of R. A. No. 3019, as a lended, the Court hereby ACQUITS them of the said charge. There eing no basis for a finding of civil liability, none is adjudged against them.

Let the b nds posted by all the accused be returned to them, subject to the usual accounting and auditing procedures of the Court.

The Hold eparture Orders issued against them are hereby lifted and set aside.

fJ.~v-,,~~~ tERESITA V. DI}{Z-BAlDOS Associate Justice

t06w; I. rC _1•. J JJ1,( WiiMQ.1A EDllBERTO G. SANDOVAL UEl R. (MARlP1RES Chairman Associate Justice /criminal case no. 247J 8 /p.p. vs.sulong, et. at. Idecision IFage 26

d~~f~A~ rolLBERTO G. SANDOV JiL

f~~/S~ EDILBERTO G. SANDOVAL Acting Presiding Justice ~ p/{~