FACTS : This is an ordinary appeal filed by Edwin Castillo seeking to overturn the Sandiganbayan’s Decision convicting him and former Binmaley Mayor Lorenzo Cerezo of 16 counts of violating Section 3(e) of R.A. 3019 for entering into lease contracts from 2011 to 2013 with Castillo’s business, MTAC’s Merchandising, without public bidding, giving unwarranted benefits and showing manifest partiality and gross negligence. The Ombudsman had earlier charged them based on 21 lease contracts used for garbage hauling after complaints that the agreements were made without procurement procedures. During trial, multiple municipal officials confirmed that while the services were necessary and payments were lawful with no COA disallowances, there was no public bidding. Castillo did not present evidence, while Cerezo’s witnesses confirmed the need for garbage collection during typhoons but did not establish procurement compliance. The Sandiganbayan found both accused criminally liable in 16 cases and acquitted them in 5 due to insufficient proof. They were sentenced to 6 years and 1 month to 10 years and 1 day imprisonment per count, with perpetual disqualification, subject to the 40-year cap. Castillo now appeals this conviction.
ISSUE : WON Sandiganbayan correctly ruled that Castillo is guilty of sixteen (16) counts of the offense defined under Section 3(e) of R.A. No. 3019
HELD : The appeal is granted because the prosecution failed to prove beyond reasonable doubt all elements of the offense under Section 3(e) of R.A. 3019, particularly the existence of conspiracy, manifest partiality, evident bad faith, or gross inexcusable negligence, and any undue injury or unwarranted benefit. The Court reiterated that mere violation of procurement laws, mistakes, or negligence does not automatically equate to criminal liability absent proof of malicious intent, corrupt motive, or fraudulent design. There was no evidence that Castillo acted with knowledge of any defect in the contracts, nor that he conspired with Mayor Cerezo, who likewise was not shown to have acted with malicious intent, nor was it proven that the government suffered actual damage or that MTAC’s Merchandising received unjustified benefits. There was no proof of alternative suppliers, overpriced rates, or failure to deliver services. Possibilities or assumptions cannot replace proof. With no clear showing of criminal design, corrupt motive, or actual injury, both accused are entitled to acquittal. Accordingly, the Sandiganbayan’s Decision is reversed and both Castillo and Cerezo are acquitted.
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