Fernan Jr. Vs People

*
another, to his hurt. There is deceit when one is misled, either by guile or trickery or by other means, to
G.R. No. 145927. August 24, 2007. believe to be true what is really false. 2. Damage: Damage may consist in the offended party being deprived
of his money or property as a result of
1
SIMON FERNAN, JR. and EXPEDITO TORREVILAS, petitioners, vs. PEOPLE OF THE 3
PHILIPPINES, respondent.
Criminal Law; Presumption of Innocence; Words and Phrases;Definitely, “reasonable doubt” is not mere

guesswork whether or not the accused is guilty, but such uncertainty that “a reasonable man may entertain VOL. 531, AUGUST 24, 2007 3
after a fair review and consideration of the evidence”—it is present when after the entire comparison and
consideration of all the evidences, leaves the minds of the judges in that condition that they cannot say they Fernan, Jr. vs. People
feel an abiding conviction, to a moral certainty, of the truth of the charge, a certainty that convinces and
directs the understanding, and satisfies the reason and judgment of those who
the defraudation, disturbance in property right, or temporary prejudice. For falsification: 1. That the
_______________ offender is a public officer, employee, or notary public; 2. That he takes advantage of his official position; 3.
That he falsifies a document by committing any of the acts defined under Article 171 of the Revised Penal
* SECOND DIVISION. Code.
1 In the SB criminal cases, petitioner is named Expedito Torrevillas; nevertheless, only one person is referred to despite the
variance in spelling. Same; Same; Same; Evidence; It is an age-old axiom that s/he who alleges something must prove it.—By
way of defense, petitioners posit that the tally sheets and other documents could in fact be traced to genuine
LAAs that were in the custody of the NBI. Unfortunately, these genuine LAAs were not introduced in
2 evidence. It is an age-old axiom that s/he who alleges something must prove it. Petitioners’ assertion that
the documents they signed were all genuine and duly covered by genuine LAAs was substantiated only by
their own self-serving and uncorroborated testimonies. We hesitate to give much weight and credit to their
bare testimonies in the face of clear, convincing, overwhelming, and hard evidence adduced by the State. If
2 SUPREME COURT REPORTS the genuine LAAs were vital to their defense, and they firmly believed that the documents were indeed in
the custody of the NBI, then petitioners could have easily procured the compulsory process to compel the
ANNOTATED
production of said documents. However, petitioners miserably failed to avail of subpoena duces tecum which
the court a quocould have readily granted. The inability to produce such important and exculpatory pieces of
Fernan, Jr. vs. People evidence proved disastrous to petitioners’ cause. Their conviction was indeed supported by proof beyond
reasonable doubt which was not overturned by defense evidence.
are bound to act conscientiously upon it.—Our Constitution unequivocally guarantees that in all
criminal prosecutions, the accused shall be presumed innocent until the contrary is proved. This sacred task Same; Same; Same; Conspiracy; Conspiracy may be implied if it is proved that two or more persons
unqualifiedly means proving the guilt of the accused beyond a reasonable doubt. Definitely, “reasonable aimed their acts towards the accomplishment of the same unlawful object, each doing a part so that their
doubt” is not mere guesswork whether or not the accused is guilty, but such uncertainty that “a reasonable combined acts, though apparently independent of each other, were in fact, connected and cooperative,
man may entertain after a fair review and consideration of the evidence.” Reasonable doubt is present when indicating a closeness of personal association and a concurrence of sentiment.—The burden of proving the
after the entire comparison and consideration of all the evidences, leaves the minds of the [judges] in that allegation of conspiracy falls to the shoulders of the prosecution. Considering, however, the difficulty in
condition that they cannot say they feel an abiding conviction, to a moral certainty, of the truth of the establishing the existence of conspiracy, settled jurisprudence finds no need to prove it by direct evidence.
charge; a certainty that convinces and directs the understanding, and satisfies the reason and judgment of In People v. Pagalasan, 404 SCRA 275 (2003), the Court explicated why direct proof of prior agreement is
those who are bound to act conscientiously upon it. not necessary: After all, secrecy and concealment are essential features of a successful conspiracy.
Conspiracies are clandestine in nature. It may be inferred from the conduct of the accused before, during
and after
Same; Same; Estafa through Falsification of Public Documents; Elements.—Petitioners were charged
with the complex crime of estafa through falsification of public documents as defined and penalized under 4
Articles 318 and 171 in relation to Article 48 of the Revised Penal Code, thus: “ART.318.Other deceits.—The
penalty of arresto mayor and a fine of not less than the amount of the damage caused and not more than
twice such amount shall be imposed upon any person who shall defraud or damage another by any deceit not
mentioned in the preceding articles of this chapter. ART. 171. Falsification by public officer, employee; or
notary or ecclesiastical minister.—The penalty of prision mayor and a fine not to exceed 5,000 pesos shall be 4 SUPREME COURT REPORTS
imposed upon any public officer, employee, or notary who, taking advantage of his official position, shall ANNOTATED
falsify a document by committing any of the following acts: x x x x 4. Making untruthful statements in a
narration of facts; ART. 48. Penalty for complex crimes.—When a single act constitutes two or more grave or Fernan, Jr. vs. People
less grave felonies, or when an offense is a necessary means for committing the other, the penalty for the
most serious crime shall be imposed, the same to be applied in its maximum period. The complex crime is
pruned into the following essential elements: For estafa: 1. Deceit: Deceit is a specie of fraud. It is actual the commission of the crime, showing that they had acted with a common purpose and design.
fraud, and consists in any false representation or contrivance whereby one person over-reaches and misleads Conspiracy may be implied if it is proved that two or more persons aimed their acts towards the
accomplishment of the same unlawful object, each doing a part so that their combined acts, though VELASCO, JR., J.:
apparently independent of each other, were in fact, connected and cooperative, indicating a closeness of 2
personal association and a concurrence of sentiment. To hold an accused guilty as a co-principal by reason of The instant petition under Rule 45 originated from 119 criminal cases filed with the
conspiracy, he must be shown to have performed an overt act in pursuance or furtherance of the complicity. Sandiganbayan (SB) involving no less than 36 former officials and employees of the then Ministry
There must be intentional participation in the transaction with a view to the furtherance of the common of Public Highways (MPH) and several suppliers of construction materials for defalcation of
design and purpose.
public funds arising from numerous transactions in the Cebu First Highway Engineering District
in 1977. Because of the sheer magnitude of
Same; Same; Same; Same; Two (2) Structures of Multiple Conspiracies; Words and Phrases; “Wheel” or
“Circle” Conspiracy and “Chain” Conspiracy, Explained.—In Estrada v. Sandiganbayan, 377 SCRA 538
(2002), we categorized two (2) structures of multiple conspiracies, namely: (1) the so-called “wheel” or “circle” _______________
conspiracy, in which there is a single person or group (the “hub”) dealing individually with two or more other 2 The entire case record consists of three (3) separate volumes.
persons or groups (the “spokes”); and (2) the “chain” conspiracy, usually involving the distribution of
narcotics or other contraband, in which there is successive communication and cooperation in much the 6
same way as with legitimate business operations between manufacturer and wholesaler, then wholesaler
and retailer, and then retailer and consumer. We find that the conspiracy in the instant cases resembles the
“wheel” conspiracy. The 36 disparate persons who constituted the massive conspiracy to defraud the 6 SUPREME COURT REPORTS ANNOTATED
government were controlled by a single hub, namely: Rolando Mangubat (Chief Accountant), Delia Preagido
(Accountant III), Jose Sayson (Budget Examiner), and Edgardo Cruz (Clerk II), who controlled the separate Fernan, Jr. vs. People
“spokes” of the conspiracy. Petitioners were among the many spokes of the wheel.
the illegal transactions, the number of people involved, and the ingenious scheme employed in
Same; Same; Same; Same; The State is not tasked to adduce direct proof of the agreement by petitioners
defrauding the government, this infamous 86 million highway scam has few parallels in the
with the other accused, for such requirement, in many cases, would border on near impossibility—the State
needs to adduce proof only when the accused committed acts that constitute a vital connection to the chain of annals of crime in the country.
conspiracy or in furtherance of the objective of the conspiracy.—After a close reexamination of the records,
the Court finds no reason to disturb the finding of the anti-graft court that petitioners are co-conspirators of
the other accused, headed by Chief Accountant Rolando Mangubat, The Case
5 Petitioners
3
Simon Fernan, Jr. and Expedito Torrevillas seek the reversal of the December 4, 1997
Decision of the SB in the consolidated Criminal Case Nos. 1640, 1641, 1642, 1643, 1818, 1819,
1820, 1821, 1822, 1823, 1879, 1880, 1881, 1882, 1883, 1884, 1885, 1886, 1887, 1888, 1889, 2839,
2840, 2841, 2842, 2843, 2844, 2845, 2846, 2847, 2848, 2849, 2850, 2851, 2852, 2853, 2854, 2855,
VOL. 531, AUGUST 24, 2007 5 2856, 2857, 2858, 2859, 2860, 2861, 2862, 2863, 2864, 2865, 2866, 2867, 2868, 2869, 2870, 2871,
2872, 2873, 2874, 2875, 2876, 2877, 2878, 2879, 2880, 2881, 2882, 2883, 2884, 2885, 2886, 2887,
Fernan, Jr. vs. People 2888, 2889, 2890, 2891, 2892, 2893, 2894, 2895, 2896, 2897, 2898, 2899, 2900, 2901, 2902, 2903,
2904, 2905, 2906, 2907, 2908, 2909, 2910, 2911, 2912, 2913, 2915, 2917, 2918, 2919, 2920, 2921, 4
2922, 2923, 2924, 2925, 2926, 2927, 2928, 2929, 2930, 2931, 2932, 2936, 2937, 2938, and 2939, all
who were similarly convicted in practically all the 119 counts of estafa. Undisturbed is the rule that this entitled People of the Philippines v. Rocilo Neis, et al.,
5
finding them guilty of multiple instances of
Court is not a trier of facts and in the absence of strong and compelling reasons or justifications, it will estafa through falsification of public documents; and the subsequent August 29, 2000 SB
accord finality to the findings of facts of the SB. The feeble defense of petitioners that they were not aware of Resolution which denied their separate pleas for reconsideration.
the ingenuous plan of the group of accused Mangubat and the indispensable acts to defraud the government Petitioner Fernan, Jr. disputes the adverse judgment in only six (6) cases, namely: 2879, 2880,
does not merit any consideration. The State is not tasked to adduce direct proof of the agreement by
2881, 2885, 2914, and
petitioners with the other accused, for such requirement, in many cases, would border on near impossibility.
The State needs to adduce proof only when the accused committed acts that constitute a vital connection to
the chain of conspiracy or in furtherance of the objective of the conspiracy. In the case at bench, the signing _______________
of the fake tally sheets and/or delivery receipts, reports of inspection, and requests for supplies and 3 Rollo, pp. 28-192. The Decision was penned by Associate Justice Cipriano A. Del Rosario (Chairperson) and concurred
materials by petitioners on separate occasions is vital to the success of the Mangubat Group in siphoning off
in by Associate Justices Leonardo I. Cruz and German G. Lee, Jr.
government funds. Without such fabricated documents, the general vouchers covering the supply of 4 The other criminal cases, namely: Criminal Case Nos. 889, etc., and 2070, etc., have been dismissed for various
materials cannot be properly accomplished and submitted to the disbursing officer for the preparation of reasons; see Id., at p. 147. Petitioners Fernan, Jr. and Torrevillas were not impleaded as accused in said cases.
checks. 5 The accused in the aforementioned cases did not have custody or control of public funds; hence, the crime charged was
estafa instead of malversation under Art. 217 of the Revised Penal Code.
PETITION for review on certiorari of a decision and resolution of the Sandiganbayan.
The facts are stated in the opinion of the Court. 7
Garcia, Landicho and Partners Law Offices for Heirs of Camilo De Letran.
The Solicitor General for respondent.
VOL. 531, AUGUST 24, 2007 7
Fernan, Jr. vs. People For a better understanding of these highways cases, the flow in the release of funds to the various
agencies of the government and the control devices set up for disbursement and accounting of public funds
should first be explained. A chart (Exhibit “B”) graphically shows the flow of allotments from the Ministry
2918; while petitioner Torrevillas seeks exoneration in nine (9) cases, namely: 2855, 2856, 2858, down to the district level.
2859, 2909, 2910, 2914, 2919, and 2932. On the basis of appropriation laws and upon request made by heads of agencies, the then Ministry of
Both petitioners assert their strong belief that their guilt has not been established beyond Budget released funds to the various agencies of the government by means of an Advice of Allotment (AA)
reasonable doubt and, hence, exculpation is in order. and a Cash Disbursement Ceiling (CDC). The Advice of Allotment is an authority for the agency to incur
obligations within a specified amount in accordance with approved programs and projects. The Cash
Disbursement Ceiling is an authority to pay. Upon receipt of the AA and CDC from the Budget, the Central
The Facts Office of the agency prepares the Sub-Advice of Allotment (SAA) and the Advice of Cash Disbursement
Ceiling (ACDC) for each region, in accordance with the disbursement allotment. These are sent to the
6
The SB culled the facts this way: Regional Office. Upon receipt, the Budget Officer of the region prepares the corresponding Letters of Advice
of Allotment (LAA) which are for-
“On June 21, 1978, COA Regional Director Sofronio Flores Jr. of COA Regional Office No. 7, directed
auditors Victoria C. Quejada and Ruth I. Paredes to verify and submit a report on sub-allotment advises 9
issued to various highway engineering districts in Cebu, particularly, the Cebu City, Cebu 1st, Cebu 2nd
and the Mandaue City Highway Engineering Districts. Complying with the directive, they conducted an
investigation and in due course submitted their findings. Their report (Exhibit “C”) confirmed the issuance VOL. 531, AUGUST 24, 2007 9
of fake Letters of Advice of Allotments (LAAs) in the districts mentioned. They discovered that two sets of Fernan, Jr. vs. People
LAAs were received by the districts. One set consists of regular LAAs which clearly indicated the covering
sub-allotment advices and were duly signed by Mrs. Angelina Escaño, Finance Officer of the MPH Regional
Office. The LAAs were numbered in proper sequence and duly recorded in the logbook of the Accounting, warded to the various districts of the region (The amount that goes to each district is already indicated in
Budget and Finance Division. The other set consists of fake LAAs which do not indicate the covering sub- the Advice of Allotment). Only upon receipt of the LAA is the district office authorized to incur obligations.
allotment advice and were signed by Chief Accountant Rolando Mangubat and Engr. Jose Bagasao, instead Now, how are funds released by the Regional Office to the different districts and ultimately paid out to
of the Finance Officer. These fake LAAs were not numbered in proper sequence; they were mostly undated contractors, the District Engineer submits to the Regional Director a request for allotment in accordance
and were sometimes duplicated. They could not be traced to the files and records of the Accounting, Budget with the program of work prepared by the former. This procedure starts with the preparation of a
and Finance Division. The accounting entry for the disbursements made on the fake LAAs was debited to Requisition for Supplies and Equipment (RSE) in the District Office by the Senior Civil Engineer, approved
the Accounts-Payable Unliquidated Obligations (8-81-400) and credited to the Checking Account with the by the District Engineer, and signed by the Chief Accountant of the Highway Engineering District, who
Bureau of Treasury (8-70-790). Nevertheless, the expenditures were taken from obligations of the current certifies as to the availability of funds. The RSE is then submitted to the Regional Director for approval.
year (1978) because all the supporting papers of the payment vouchers were dated in that year. The entries Once it is approved, a Request for Obligation of Allotment (ROA) is prepared by the Chief Accountant of the
in the district Senior Civil Engineer. The ROA signifies that a certain amount of district funds has been set aside
or earmarked for the particular expenditures stated in the RSE. On the basis of the ROA, the District Office
_______________ puts up advertisements, [conducts] biddings, makes awards and prepares purchase orders which are served
on the winning bidder. The District Office also prepares a summary of deliveries with the corresponding
6 Supra note 3, at pp. 102-109. delivery receipts and tally sheets, conducts inspection and prepares the General Voucher for the payment of
8
deliveries. Once the General Voucher (GV) has been prepared, the corresponding check in the form of a
Treasury Check Account for Agency (TCAA) is drawn by the Disbursing Officer and finally released to the
contractor.
8 SUPREME COURT REPORTS ANNOTATED At the end of every month, the Report of Checks Issued by Deputized Disbursing Officer (RCIDD) is
prepared, listing all the checks issued during that period. The RCIDDO is submitted to the accounting
Fernan, Jr. vs. People division of the region. Upon receipt of the RCIDDO, the Regional Office draws a journal voucher, debiting
the account obligation (liquidated or unliquidated obligation, whichever is applicable), and crediting the
account Treasury Check Account for Agency (TCAA). The RCIDDO is recorded in the Journal of Checks
journal vouchers filed with the MPH Regional Office were adjusted every month to 8-81-400 (unliquidated or Issued by Deputized Disbursing Officers (JCIDDO) and posted in the general ledger at the end of each
prior years obligation), 8-83-000 (liquidated or current year obligations) and 8-70-700 (Treasury/Agency month.
Account). All of these were approved for the Finance Officer by Chief Accountant Rolando Mangubat. Simultaneous with the flow of the RCIDDO, the ROAs are summarized in the Reports of Obligations
Mangubat, however, had no authority to approve them because since October 1977, he had already been Incurred (ROI) in the District Office, once or twice a month, depending upon the volume of
detailed to the MPH Central Office. There were indications that the practice had been going on for years.
xxxx 10
Due to these serious irregularities, then President Marcos created a Special Cabinet Committee on MPH
Region VII “Ghost Projects Anomalies” which in turn organized a Special Task Force composed of
representatives from the Finance Ministry Intelligence Bureau (FMIB), National Bureau of Investigation 10 SUPREME COURT REPORTS ANNOTATED
(NBI), the Bureau of Treasury and the Commission on Audit. The mission of the task force was to conduct a
wider and more extended investigation in all the fifteen (15) highway engineering districts of MPH Region Fernan, Jr. vs. People
VII, including the Cebu First Highway Engineering District, the 1977 questionable disbursements of which
are the subject matter of these cases. transactions. The ROI is then submitted to the Regional Office. Upon receipt of the ROI, the accountant of
xxxx the Regional Office draws a journal voucher taking up the following entry: debiting the appropriation
allotted (0-90-000) and crediting the obligation incurred (0-82-000). This is recorded in the general voucher 12
and posted to the general ledger at the end of each month. The journal voucher is prepared, closing the
account 8-70-709 to 8-71-100-199 at the end of each month. It is also recorded and posted to the general
ledger. At the end of the month, the balances of each account shown in the general ledger are summarized in 12 SUPREME COURT REPORTS ANNOTATED
a statement called the trial balance. The trial balance is submitted to the MPH Central Office in Manila
where it is consolidated with other trial balances submitted by other regional offices. Fernan, Jr. vs. People
xxxx
The elaborate accounting procedure described above with its system of controls was set up obviously to made with the PNB from which withdrawals could be charged. Only CDCs were presented to it, and not
make sure that government funds are properly released, disbursed and accounted for. In the hands of knowing that some of the CDCs were fake, the PNB branch paid out the checks drawn against them. The
untrustworthy guardians of the public purse, however, it proved to be inadequate. There were loopholes bank had also no way of knowing what amount was appropriated for the district; consequently, it did not
which an unscrupulous person adroit in government accounting could take advantage of to surreptitiously know if the limit had already been exceeded. Only an insider steep in government accounting, auditing and
draw enormous sums of money from the government. banking procedures, particularly their flaws and loopholes, could have pulled off such an ingenious and
Sometime in February, 1977, accused Rolando Mangubat (Chief Accountant), Delia Preagido (Accountant audacious plan.
III), Jose Sayson (Budget Examiner), and Edgardo Cruz (Clerk II), all of MPH Region VII, met at the Town xxxx
and Country Restaurant in Cebu City and hatched an ingenious plan to siphon off large sums of money from Focusing our attention now on the anomalies committed in the Cebu First District Engineering District,
government coffers. Mangubat had found a way to withdraw government money through the use of fake hereinafter referred to as the Cebu First HED for brevity, the Court finds that the same pattern of fraud
LAAs, vouchers and other documents and to conceal traces thereof with the connivance of other government employed in the other highway engineering districts in MPH Region VII was followed. The Cebu First HED
officials and employees. In fine, the fraudulent scheme involved the splitting of LAAs and RSEs so that the received from Region VII thirty-four Letters of Advice of Allotment (LAAs) in the total sum of P4,734,336.50
amount covered by each general voucher is less than P50,000.00 to do away with the approval of the and twenty-nine (29) corresponding SubAdvices of Cash Disbursement Ceiling (SACDCs), amounting to
Regional Auditor; the charging of disbursements to unliquidated obligations due the previous year to P5,160,677.04 for the period January 1, 1977 to December 31, 1977. But apart from this, the Cebu First
provide the supposed source of funds; and the manipulation of the books of account by negation or HED appears to have also received for the same period another set of eighty-four (84) LAAs amounting to
adjustment, i.e., the cancellation of checks through journal vouchers to conceal disbursements in excess of P4,680,694.76 which however, could not be traced to any Sub-Advice of Allotment (SAA) or matched to the
the cash disbursement ceiling (CDC), so as not to reflect such disbursements in the trial balances submitted Advices of Cash Disbursement Ceiling (ACDCs) received from the MPH and Regional Office. This is highly
to the Regional Office. irregular and not in consonance with accounting procedures.
It was also made to appear that the payments were made for alleged prior year’s obligations and
11
chargeable to Account 8-81-400, obviously because, they were not properly funded. Furthermore, the list of
projects in Region VII for 1977 showed that Cebu First HED completed rehabilitation and/or improvement
of roads and bridges in its districts from February to May 1977, with expenditures amounting to
VOL. 531, AUGUST 24, 2007 11 P613,812.00. On the other hand, the expenditures for barangay roads in the same district in 1977 amounted
Fernan, Jr. vs. People to P140,692.00, and these were all completed within the period from November to December, 1977. These
completed projects were properly funded by legitimate LAAs and CDCs in the total amount of only
P754,504.00. However, an additional amount of P3,839,810.74 was spent by the Cebu First HED for
Mangubat enticed Preagido, Cruz and Sayson to join him. All three agreed to help him carry out his plan. maintenance of roads and bridges for the same
They typed the fake LAAs during Saturdays. Cruz and Sayson also took charge of negotiating or selling the
fake LAAs to contractors at 26% of the gross amount. Preagido on her part manipulated the General Ledger, 13
Journal Vouchers and General Journal thru negative entries to conceal the illegal disbursements. Thus, in
the initial report of the auditors (Exhibit “D”), it was discovered that the doubtful allotments and other
anomalies escaped notice due to the following manipulations: VOL. 531, AUGUST 24, 2007 13
“The letter-advices covering such allotments (LAA) were generally not signed by the Finance Officer nor recorded in the Fernan, Jr. vs. People
books of accounts. Disbursements made on the basis of these fake LAAs were charged to the unliquidated Obligations
(Account 8-81-400), although the obligations being paid were not among those certified to the unliquidated obligations
(Account 8-81-400) at the end of the preceding year. To conceal the over-charges to authorized allotments, account 8-81-
year (1977) but the same could not be traced to any authoritative document coming from the MPH.
400 and the excess of checks issued over authorized cash disbursements ceiling, adjustments were prepared monthly xxxx
through journal vouchers to take up the negative debit to Account 8-81-400 and a negative credit to the Treasury A total of 132 General Vouchers, emanating from fake LAAs and ACDCs, were traced back to Rolando
Checking Account for Agencies Account 8-70-790. These journal vouchers in effect cancelled the previous entry to record Mangubat, Regional Accountant of Region VII and Adventor Fernandez, Regional Highway Engineer, also of
the disbursements made on the basis of the fake LAAs. Thus, the affected accounts (Accounts 8-81-400 and 8-70-790), as Region VII. Those LAAs and ACDCs became the vehicles in the disbursement of funds amounting to
appearing in the trial balance would not show the irregularity. The checks, however, were actually issued.” P3,839,810.74, through the vouchers purportedly issued for the purchase and delivery of the aforementioned
materials allegedly used for the maintenance and repair of the national highways within the Cebu First
The four formed the nucleus of the nefarious conspiracy. Other government employees, tempted by the HED. Despite the enormous additional expenditure of P3,839,810.74, the roads and bridges in the district,
prospect of earning big money, allowed their names to be used and signed spurious documents. as found out by the NBI, did not show any improvement. As testified to by several barangay captains, the
Although the anomalies had been going on for sometime (February 1977 to June 1978), the PNB and road maintenance consisted merely of spreading anapog or limestone on potholes of the national highway.
Bureau of Treasury had no inkling about it until the NBI busted the illegal operations. (Some of the Obviously, the vouchers for payments of alleged maintenance of roads and bridges in the additional
recipients of the stolen funds spent lavishly and bought two cars at a time). The reason for this is that, at amount of P3,839,810.74 were prepared for no other purpose than to siphon the said amount from the
that time, the PNB and Bureau of Treasury were not furnished copy of the mother CDC and the local branch government coffer into the pockets of some officials and employees of Region VII and the Cebu First HED, as
of the PNB did not receive independent advice from the PNB head office in Manila. There were no deposits well as the suppliers and contractors who conspired and confederated with them.”
of money
The nuclei of this massive conspiracy, namely: Rolando Mangubat, Jose Sayson, and Edgardo 1. Request for Allocation of Allotment
Cruz, all of MPH Region VII, were found guilty in all 119 counts and were accordingly sentenced 2. Letter of Advice of Allotment
by the SB. The other conniver, Delia Preagido, after being found guilty in some of the cases, 3. Advice of Cash Disbursement Ceiling
became a state witness in the remainder. On the basis of her testimony and pertinent documents, 4. General Voucher No. B-15
Informations were filed, convictions were obtained, and criminal penalties were imposed on the 5. Check No. 9933064
rest of the accused. 6. Abstract of Bids
On the other hand, petitioners were both Civil Engineers of the MPH assigned to the Cebu 7. Purchase Order
First Highway Engineering District. Petitioner Fernan, Jr. was included among the accused in 8. Statement of Delivery
Criminal Case Nos. 2879, 2880, 2881, 2885, 2914, and 2918 allegedly for having signed six (6) 9. Report of Inspection
tally sheets or statements of deliveries of materials, used as bases for the 10. Requisition for Supplies or Equipment
11. Trial Balance
14
by making it appear that Regional Office No. VII of the Ministry of Public Highways regularly issued an advice of
cash disbursement ceiling (ACDC) and the corresponding letter of advice of allotment (LAA) to cover the pur chase
14 SUPREME COURT REPORTS ANNOTATED 7
of 1,400 cu. m. of item 108 for use in the repair of the Cebu Hagnaya Wharf road from Km. 50.30 to Km.
60.00, when in truth and in fact, as all the accused knew, the same were not true and correct; by making it appear in the
Fernan, Jr. vs. People voucher that funds were available and that there were appropriate requests for allotments (ROA) to pay the aforesaid
purchase; that a requisition for said item was made and approved; that a regular bidding was held; that a corresponding
purchase order was issued in favor of the winning bidder; that the road construction ma-
preparation of the corresponding number of general vouchers. Fund releases were made to the
suppliers, contractors, and payees based on these general vouchers.
_______________
The Information against Fernan, Jr. in SB Criminal Case No. 2879 reads as follows:
7 Rollo, p. 18; limestone, or sand and gravel—the latter being of higher quality.
“The undersigned accuses Rocilo Neis, Rolando Mangubat, Adventor Fernandez, Angelina Escaño, Delia
Preagido, Camilo de Letran, Manuel de Veyra, Heracleo Faelnar, Basilisa Galvan, Matilde Jabalde, Josefina 16
Luna, Jose Sayson, Edgardo Cruz, Leonila del Rosario, Engracia Escobar, Abelardo Cardona, Leonardo
Tordecilla, Agripino Pagdanganan, Ramon Quirante, Mariano Montera, Mariano Jarina, Leo Villagonzalo,
Asterio Buqueron, Zosimo Mendez, Simon Fernan, Jr. and Juliana de los Angeles for estafa thru falsification 16 SUPREME COURT REPORTS ANNOTATED
of public and commercial documents, committed as follows:
Fernan, Jr. vs. People
That on, about and during the period from December 1, 1976 up to January 31, 1977, both dates inclusive, in the
City of Cebu and in Cebu Province, and within the jurisdiction of this Honorable Court, the accused Rocilo Neis, terials were delivered, inspected and used in the supposed project and that the alleged supplier was entitled to payment
Assistant District Engineer of Cebu HED I; Rolando Mangubat, the Chief Accountant of Region VII of the Ministry of when in truth and in fact, as all the accused know, all of the foregoing were false and incorrect and because of the
Public Highways and Adventor Fernandez, Regional Highway Engineer of same Regional Office, conniving with each foregoing falsifications, the above-named accused were able to collect from the Cebu I HED the total amount
other to defraud the Philippine Government with the indispensable cooperation and assistance of Angelina Escaño, of TWENTY EIGHT THOUSAND PESOS (P28,000.00), Philippine Currency, in payment of the non-existing
Finance Officer of Region VII of the Ministry of Public Highways; Delia Preagido, Assistant Chief Accountant of same deliveries; that the said amount of P28,000.00 was not reflected in the monthly trial balance submitted to the Central
Regional Office; Camilo de Letran, Chief Accountant of Cebu I HED; Manuel de Veyra, Regional Director, MPH, Region Office by Region VII showing its financial condition as the same was negated thru the journal voucher, as a designed
VII; Heracleo Faelnar, then Assistant Director MPH Region VII; Basilisa Galvan, Budget Officer, MPH, Region VII; means to cover-up the fraud; and the accused, once in possession of the said amount, misappropriated, converted and
Matilde Jabalde, Supervising Accounting Clerk, MPH, Region VII; Josefina Luna, Accountant II, MPH, Region VII; Jose misapplied the same for their personal needs, to the damage and prejudice of the Philippine Government in the total
Sayson, Budget Examiner, MPH, Region VII, Edgardo Cruz, Accountant I, MPH, Region VII; Leonila del Rosario, Chief amount of TWENTY EIGHT THOUSAND PESOS (P28,000.00), Philippine Currency.
Finance and Management Service, MPH, Central Office; Engracia Escobar, Chief Accountant, MPH, Central Office;
Abelardo Cardona, Assistant Chief Accountant, MPH, Central Office; Leonardo Tordecilla, Supervising Accountant, CONTRARY TO LAW.”
MPH, Central Office; Agripino Pagdanganan, Budget Officer III, MPH, Central Office; Ramon Quirante, Property
Custodian The Informations in the six (6) cases involving Fernan, Jr. were essentially identical save for the
15
details as highlighted in boldface above. For ease of reference, Fernan, Jr.’s criminal cases are
detailed below:
VOL. 531, AUGUST 24, 2007 15 Criminal Dates of Main Items Amount
Case No. Commission Documents Allegedly of Fraud
Falsified Purchased
of Cebu I HED; Mariano Montera, Senior Civil Engineer Engineer of Cebu I HED; Mariano Jarina, Clerk in the
Property Division of Cebu I HED; Leo Villagonzalo, Auditor’s Aide of Cebu I HED; Zosimo Mendez, Auditor of Cebu I
HED; Asterio Buqueron, Administrative Officer of Cebu I HED; Simon Fernan, Jr., Civil Engineer of Cebu I HED and
Juliana de los Angeles, an alleged supplier, all of whom took advantage of their official positions, with the exception of
Juliana de los Angeles, mutually helping each other did then and there willfully, unlawfully and feloniously falsify
and/or cause the falsification of the following documents, to wit:
Criminal Dates of Main Items Amount General Typhoon
Case No. Commission Documents Allegedly of Fraud Voucher Aring at the
Falsified Purchased No. B- Tabogon-Bogo
245; provincial
2879 December 1. General 1,400 cu. PhP
3. Check road from Km.
1, 1976 up Voucher m. of item 28,000.00
No. 92 to Km. 98
to January No. B-15; 108 for
9933294;
31, 1977 2. Check use in the
No. repair of 2885 January 1. materials for PhP
9933064; the Cebu 2, 1977 Request use in the 30,000.00
Hagnaya up to for repair and
Wharf January Allocation rehabilitation
road from 31, 1977 of of the Daan-
Km. 50.30 Allotment Bantayan
to Km. 101-12- road from Km.
60.00 112-76; 127.00 to Km.
2. 136
2880 December 1. Request 1,400 cu. PhP
General
1, 1976 up for m. of item 28,000.00
Voucher
to January Allocation 108 for
No. B-76;
31, 1977 of use in the
3. Check
Allotment repair of
No.
101-12- the Bogo-
9933125;
105-76; Curva-
2. General Medellon 2914 October 1, 1. 1,200 cu. m. of PhP
Voucher road from 1977 up General item 108 for 27,000.00
No. B-55; Km. to Voucher use in the
3. Check 110.00 to November No. B- rehabilitation
No. Km. 30, 1977 927; of the Cajel-
119.00 2. Check Lugo, Barbon
No. barangay road
17 9403425;
2918 January 1. 1,500 cu. m. of PhP
VOL. 531, AUGUST 24, 2007 17 2, 1977 General item 108 for 30,000.00
up to Voucher the
February No. B- rehabilitation
28, 1977 107; of the Cebu
9933104; 2. Check North
2881 January 1. Approximately PhP No. Hagnaya
2, 1977 Request 1,500 cu. m. of 31,000.00 9933157; Wharf road
up to for item 108 for from Km. 71
February Allocation use in the to Km. 76
28, 1977 of repair and
Allotment rehabilitation On the other hand, petitioner Torrevillas was one of the accused in Criminal Case Nos. 2855,
101-2-56- of damaged 2856, 2858, 2859, 2909, 2910, 2914, 2919, and 2932.
77; roads and The Information against Torrevillas in SB Criminal Case No. 2855 reads as follows:
2. bridges by
18 when in truth and in fact, as all the accused knew, the same were not true and correct; by making it appear in the
voucher that funds were available and that there were appropriate requests for allotments (ROA) to pay the aforesaid
purchase; that a requisition for said item was made and approved; that a regular bidding was held; that a corresponding
18 SUPREME COURT REPORTS ANNOTATED purchase order was issued in favor of the winning bidder; that the road construction materials were delivered, inspected
and used in the supposed project and that the alleged supplier was entitled to payment when in truth and in fact, as all
Fernan, Jr. vs. People the accused know, all of the foregoing were false and incorrect and because of the foregoing falsifications, the above-
named accused were able to collect from the Cebu I HED the total amount of FORTY EIGHT THOUSAND FOUR
HUNDRED THIRTY ONE PESOS & 85/100 (P48,431.85), Phil-
“The undersigned accuses Rocilo Neis, Rolando Mangubat, Adventor Fernandez, Angelina Escaño, Delia
Preagido, Camilo de Letran, Manuel de Veyra, Heracleo Faelnar, Basilisa Galvan, Matilde Jabalde, Josefina _______________
Luna, Jose Sayson, Edgardo Cruz, Leonila del Rosario, Engracia Escobar, Abelardo Cardona, Leonardo
Tordecilla, Agripino Pagdanganan, Ramon Quirante, Jorge de la Peña, Leo Villagonzalo, Asterio Buqueron, 8 Id., at p. 23; bituminous asphalt.
Expedito Torrevillas, Mariano Montera and Rufino V. Nuñez for estafa thru falsification of public and
20
commercial documents, committed as follows:
That on, about and during the period from June 1, 1977 up to June 30, 1977, both dates inclusive, in the City of Cebu
and in Cebu Province, and within the jurisdiction of this Honorable Court, the accused Rocilo Neis, Assistant District 20 SUPREME COURT REPORTS ANNOTATED
Engineer of Cebu HED I; Rolando Mangubat, the Chief Accountant of Region VII of the Ministry of Public Highways and
Adventor Fernandez, Regional Highway Engineer of same Regional Office, conniving with each other to defraud the Fernan, Jr. vs. People
Philippine Government with the indispensable cooperation and assistance of Angelina Escaño, Finance Officer of Region
VII of the Ministry of Public Highways; Delia Preagido, Assistant Chief Accountant of same Regional Office; Camilo de ippine Currency, in payment of the non-existing deliveries; that the said amount of P48,431.85 was not reflected in the
Letran, Chief Accountant of Cebu I HED; Manuel de Veyra, Regional Director, MPH, Region VII; Heracleo Faelnar, then monthly trial balance submitted to the Central Office by Region VII showing its financial condition as the same was
Assistant Director MPH Region VII; Basilisa Galvan, Budget Officer, MPH, Region VII; Matilde Jabalde, Supervising negated thru the journal voucher, as a designed means to cover-up the fraud; and the accused, once in possession of the
Accounting Clerk, MPH, Region VII; Josefina Luna, Accountant II, MPH, Region VII; Jose Say-son, Budget Examiner, said amount, misappropriated, converted and misapplied the same for their personal needs, to the damage and prejudice
MPH, Region VII, Edgardo Cruz, Accountant I, MPH, Region VII; Leonila del Rosario, Chief Finance and Management of the Philippine Government in the total amount of FORTY EIGHT THOUSAND FOUR HUNDRED THIRTY ONE
Service, MPH, Central Office; Engracia Escobar, Chief Accountant, MPH, Central Office; Abelardo Cardona, Assistant PESOS & 85/100 (P48,431.85), Philippine Currency.
Chief Accountant, MPH, Central Office; Leonardo Tordecilla, Supervising Accountant, MPH, Central Office; Agripino
Pagdanganan, Budget Officer III, MPH, Central Office; Ramon Quirante, Property Custodian of Cebu I HED; Jorge de CONTRARY TO LAW.”
la Peña, Auditor of Cebu I HED; Leo Villagonzalo, Auditor’s Aide of Cebu I HED; Asterio Buqueron, Administrative
Officer of Cebu I HED; Expedito Torrevillas, representative of the Engineer’s Office, Cebu I HED; Mariano Montera, The Torrevillas cases were substantially the same save for the details highlighted in the
Senior Civil Engineer Engineer of Cebu I HED; and Rufino V. Nuñez, an alleged supplier, all of whom took advantage of
their official positions, with the exception of Rufino V.
aforequoted typical accusatory pleading. For ease of reference, Torrevillas’ criminal cases are
particularized as follows:
19
Criminal Dates of Main Items Amount
Case No. Commission Documents Allegedly of Fraud
VOL. 531, AUGUST 24, 2007 19
Falsified Purchased
2855 June 1, 1. Request 153.63 m. PhP
1977 up to for t. of item 48,431.85
Nuñez, mutually helping each other did then and there willfully, unlawfully and feloniously falsify and/or cause the
falsification of the following documents, to wit: June 30, Allocation 310 for
1977 of use in
1. Request for Allocation of Allotment—101-10-186-76; 10-190-76; 10-192-76; 10-188-76; 10-180-76
Allotment asphalting
2. Letter of Advice of Allotment
101-10- of the
3. Advice of Cash Disbursement Ceiling
186-76; 10- Toledo-
4. General Voucher No. B-613
5. Check No. 9403099
190-76; 10- Tabuelan
6. Abstract of Bids 192-76; 10- road from
7. Purchase Order 188-76; 10- Km.
8. Statement of Delivery 180-76; 108.34 to
9. Report of Inspection 2. General Km.
10. Requisition for Supplies or Equipment Voucher 109.52
11. Trial Balance No. B-613;
by making it appear that Regional Office No. VII of the Ministry of Public Highways regularly issued an advice of
3. Check
cash disbursement ceiling (ACDC) and the corresponding letter of advice of allotment (LAA) to cover the purchase No.
of 153.63 m. t. of item 3108 for use in asphalting of the Toledo-Tabuelan road at Km. 108.34 to Km. 109.52, 9403099;
Criminal Dates of Main Items Amount 2859 June 1, 1. Request 110.01 m. t. PhP
Case No. Commission Documents Allegedly of Fraud 1977 up to for of item 310 34,680.65
Falsified Purchased June 31, Allocation for use in
1977 of asphalting
2856 June 1, 1. Request 153.76 m. PhP
Allotment of the
1977 up to for t. of item 48,472.84
101-7-63- Toledo-
June 30, Allocation 310 for
76; 8-102- Tabuelan
1977 of use in the
76; 8-121- road from
Allotment asphalting
76 Km. 108.34
101-10-15- of the
2. General to
Toledo-
Voucher Km.109.52
No. B-631;
21
3. Check
No.
VOL. 531, AUGUST 24, 2007 21 9403117;
Fernan, Jr. vs. People 2909 September 1. General 1,200 cu.m. PhP
1, 1977 up Voucher of item 108 27,900.00
76; 9-201- Tabuelan to
76; 8-152- road from
76; 8-153- Km 108.34 22
76;9-181- to Km.
76; 9-184- 109.52 22 SUPREME COURT REPORTS ANNOTATED
76
2. General Fernan, Jr. vs. People
Voucher
No. B-619; November No. B- for use in the
3. Check 30, 1977 928; rehabilitation
No. 2. Check of the
9403105; No. Buanoy-
9403426; Cantibas,
2858 June 1, 1. Request 151.35 m. t. PhP
Balaban
1977 up to for of item 310 47,713.09
barangay
July 31, Allocation for use in
road
1977 Allotment the
101-6-234- asphalting 2910 September 1. 1,200 cu. m. PhP
76; 6-237- of the 1, 1977 up General of item 108 27,900.00
76; 6-239- Toledo- to Voucher for use in the
76; 6-241- Tabuelan November No. B- rehabilitation
76; 6-240- road from 30, 1977 929; of the Magay-
76 Km. 108.34 2. Check Canamukan,
2. General to Km. No. Compostela
Voucher 109.52 9403427; barangay
No. B-629; road
3. Check
2914 October 1, 1. 1,200 cu. m. PhP
No.
1977 up to General of item 108 27,000.00
9403115;
Voucher for use in the
November No. B- rehabilitation The anti-graft court was fully convinced of the guilt of petitioner Fernan, Jr.; and in its December
30, 1977 927; of the Cajel- 4, 1997 Decision, it found him criminally liable in the six (6) cases against him, thus:
2. Check Lugo, Barbon “In Criminal Case No. 2879, the Court finds accused JOSE SAYSON, RAMON QUIRANTE, MARIANO
No. barangayroad MONTERA, ZOSIMO MENDEZ, MARIANO JARINA and SIMON FERNAN, Jr., GUILTY beyond
9403425; reasonable doubt as co-principals in the crime of Estafa thru falsification of Public Documents as defined
and penalized in Articles 318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no
2919 January 2, 1. 1,550 cu. m. PhP modifying circumstances in attendance, hereby sentences each of them to an indeterminate penalty ranging
1977 up to General of item 108 31,000.00 from six (6) years of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day
February Voucher for use in the of prision mayor, as maximum, with the accessory penalties provided by law, to pay a fine of Three
Thousand Five Hundred Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the
28, 1977 No. B- repair and Philippines in the9 amount of Twenty Eight Thousand Pesos (P 28,000.00); and, to pay their proportionate
244; rehabilitation share of the costs. (Emphasis supplied.)
2. Check of damaged In Criminal Case No. 2880, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON
No. roads and QUIRANTE, MARIANO MONTERA, ZOSIMO MENDEZ, and SIMON FERNAN, Jr., GUILTY beyond
reasonable doubt as co-principals in the crime of Estafa thru falsification of Public Documents as defined
9933293; bridges at the and penalized in Articles 318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no
Toledo- modifying circumstances in atten-
Tabuelan
national road _______________
from Km. 71 9 Id., at p. 170.
to Km. 83
24
2932 June 1, 1. 250 gals of PhP
1977 up to Request aluminum 44,762.58
24 SUPREME COURT REPORTS ANNOTATED
July 31, for paint 324
1977 Allocat gals of red Fernan, Jr. vs. People
ion of lead paint for
Allotment use in the dance, hereby sentences each of them to an indeterminate penalty ranging from six (6) years of prision
101-7-83- maintenance correccional, as minimum, to ten (10) years, eight (8) months and one (1) day of prision mayor, as maximum,
with the accessory penalties provided by law, to pay a fine of Three Thousand Five Hundred Pesos (P
76; 7-84- 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the amount of Twenty Eight
76; 7-124- 10
Thousand Pesos (P 28,000.00); and, to pay their proportionate share of the costs. (Emphasis supplied.)
76; 8- In Criminal Case No. 2881, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON
QUIRANTE, ZOSIMO MENDEZ and SIMON FERNAN, Jr., GUILTYbeyond reasonable doubt as co-
principals in the crime of Estafa thru falsification of Public Documents as defined and penalized in Articles
23
318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no modifying circumstances
in attendance, hereby sentences each of them to an indeterminate penalty ranging from six (6) years
VOL. 531, AUGUST 24, 2007 23 of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day of prision mayor, as
maximum, with the accessory penalties provided by law, to pay a fine of Three Thousand Five Hundred
Fernan, Jr. vs. People Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the 11
amount of
Thirty One Thousand Pesos (P 31,000.00); and, to pay their proportionate share of the costs. (Emphasis
supplied.)
153-76; 8-170-76; of national roads In Criminal Case No. 2885, the Court finds accused CAMILO DE LETRAN JOSE SAYSON, RAMON
2. General and bridges QUIRANTE, ZOSIMO MENDEZ and SIMON FERNAN, Jr., GUILTY beyond reasonable doubt as co-
Voucher B-643;
3. Check No. in attendance, hereby sentences each of them to an indeterminate penalty ranging from six (6) years
9403130; of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day of prision mayor, as
maximum, with the accessory penalties provided by law, to pay a fine of Three Thousand Five Hundred
Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the amount of
Thirty Thousand Pesos
The Sandiganbayan’s Ruling
_______________
10 Id.
11 Id., at p. 171. In Criminal Case No. 2856, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON
QUIRANTE, MARIANO MONTERA and EXPEDITO TORREVILLASGUILTY beyond reasonable
25
doubt as co-principals in the crime of Estafa thru falsification of Public Documents as defined and penalized
in Articles 318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no modifying
circumstances in attendance, hereby sentences each of them to an indeterminate penalty ranging from six
VOL. 531, AUGUST 24, 2007 25
(6) years of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day of prision
Fernan, Jr. vs. People mayor, as maximum, with the accessory penalties provided by law, to pay a fine of Three Thousand Five
Hundred Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the
12 amount of Forty Eight Thousand Four 16
Hundred Seventy Two Pesos and 84/100 (P 48,472.84); and, to pay
(P 30,000.00); and, to pay their proportionate share of the costs. (Emphasis supplied.) their proportionate share of the costs. (Emphasis supplied.)
In Criminal Case No. 2914, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON In Criminal Case No. 2858, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON
QUIRANTE,EXPEDITO TORREVILLAS and SIMON FERNAN, Jr., GUILTY beyond reasonable doubt QUIRANTE, MARIANO MONTERA and EXPEDITO TOREVILLAS, GUILTY beyond reasonable
as co-principals in the crime of Estafa thru falsification of Public Documents as defined and penalized in doubt as co-principals in the crime of Estafa thru Falsification of Public Documents as defined and penalized
Articles 318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no modifying in Articles 318 and 171, in relation to Article 48 of the Revised Penal relation to
(6) years of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day of prision _______________
mayor, as maximum, with the accessory penalties provided by law, to pay a fine of Three Thousand Five
15 Id., at p. 161.
Hundred Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the 16 Id.
amount 13
of Twenty Seven Thousand Pesos (P 27,000.00); and, to pay their proportionate share of the
costs. (Emphasis supplied.) 27
In Criminal Case No. 2918, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON
QUIRANTE, ZOSIMO MENDEZ, SIMON FERNAN, Jr. and ISMAEL SABIO, Jr. GUILTY beyond
reasonable doubt as co-principals in the crime of Estafa thru falsification of Public Documents as defined VOL. 531, AUGUST 24, 2007 27
and penalized in Articles 318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no
modifying circumstances in attendance, hereby sentences each of them to an indeterminate penalty ranging Fernan, Jr. vs. People
from six (6) years of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day
of prision mayor, as maximum, with the accessory penalties provided by law, to pay a fine of Three
Article 48 of the Revised Penal Code, and there being no modifying circumstances in attendance, hereby
Thousand Five Hundred Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the
sentences each of them to an indeterminate penalty ranging from six (6) years of prision correccional, as
Philippines in the amount of Thirty Thousand Pesos (P 30,000.00); and, to pay their proportionate share of
14
minimum, to ten (10) years, eight (8) months and one (1) day of prision mayor, as maximum, with the
the costs.” (Emphasis supplied.)
accessory penalties provided by law, to pay a fine of Three Thousand Five Hundred Pesos (P3,500.00); to
Petitioner Torrevillas suffered the same fate and was convicted in the nine (9) criminal cases, to indemnify, jointly and severally the Republic of the Philippines in the amount of Forty Seven Thousand
Seven Hundred Thirteen Pesos and 9/100 (P47,713.09); and, to pay their proportionate share of the costs.
wit:
QUIRANTE, MARIANO MONTERA and EXPEDITO TOREVILLAS, GUILTY beyond reasonable
_______________ doubt as co-principals in the crime of Estafa thru Falsification of Public Documents as defined and penalized
12 Id.,
in Articles 318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no modifying
at p. 172. circumstances in attendance, hereby sentences each of them to an indeterminate penalty ranging from six
13 Id., at p. 182.
14 Id.,
at pp. 183-184.
26 Hundred Pesos (P3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the amount
of Thirty Four Thousand
17
Six Hundred Eighty pesos and 65/100 (P34,680.65); and to pay their proportionate
share of the costs.
26 SUPREME COURT REPORTS ANNOTATED In Criminal Case No. 2909, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON
QUIRANTE, FLORO JAYME and EXPEDITO TORREVILLAS GUILTY beyond reasonable doubt as co-
Fernan, Jr. vs. People principals in the crime of Estafa thru falsification of Public Documents as defined and penalized in Articles
“In Criminal Case No. 2855, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day of prision mayor, as
QUIRANTE, MARIANO MONTERA, and EXPEDITO TORREVILLASGUILTY beyond reasonable maximum, with the accessory penalties provided by law, to pay a fine of Three Thousand Five Hundred
doubt as co-principals in the crime of Estafa thru falsification of Public Documents as defined and penalized Pesos (P3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the amount of
in Articles 318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no modifying Twenty Seven
_______________
Hundred Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the 17 Id., at pp. 162-163.
amount of Forty Eight Thousand Four 15
Hundred Thirty One Pesos and 85/100 (P 48,431.85); and, to pay
their proportionate share of the costs. (Emphasis supplied.) 28
28 SUPREME COURT REPORTS ANNOTATED by law, to pay a fine of Three Thousand Five Hundred Pesos (P 3,500.00); to indemnify, jointly and severally
the Republic of the Philippines in the amount of Forty Four Thousand Seven21
Hundred Sixty Two Pesos and
Fernan, Jr. vs. People 58/100 (P 44,762.58); and, to pay their proportionate share of the costs.” (Emphasis supplied.)
18 Petitioners made the supplication before the court a quo to recall the adverse judgments against
Thousand Nine Hundred Pesos (P27,900.00); and, to pay their proportionate share of the costs. (Emphasis
supplied.) them which was declined by the August 29, 2000 SB Resolution.
In Criminal Case No. 2910, the Court finds accused CAMILO DE LETRAN, JOSE SAYSON, RAMON Firm in their belief that they were innocent of any wrongdoing, they now interpose the instant
QUIRANTE, FLORO JAYME and EXPEDITO TORREVILLAS GUILTY beyond reasonable doubt as co- petition to clear their names.
318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no modifying circumstances _______________
of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day of prision mayor, as 20 Id., at p. 184.
maximum, with the accessory penalties provided by law, to pay a fine of Three Thousand Five Hundred 21 Id., at pp. 188-189.
Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the amount of
Twenty Seven Thousand Nine Hundred Pesos (P 27,900.00); and, to pay their proportionate share of the 30
19
costs. (Emphasis supplied.)
QUIRANTE,EXPEDITO TORREVILLAS and SIMON FERNAN, Jr., GUILTY beyond reasonable doubt
as co-principals in the crime of Estafa thru falsification of Public Documents as defined and penalized in Fernan, Jr. vs. People
Articles 318 and 171, in relation to Article 48 of the Revised Penal Code, and there being no modifying
Hundred Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the The Issues
amount of Twenty Seven Thousand Pesos (P 27,000.00); and, to pay their proportionate share of the costs.
(Emphasis supplied.) Petitioners put forward two (2) issues, viz.:
QUIRANTE, MARIANO MONTERA, ZOSIMO MENDEZ, EXPEDITO TORREVILLAS and ISMAEL I
SABIO, Jr. GUILTY beyond reasonable doubt as co-
THE HONORABLE SANDIGANBAYAN TOTALLY IGNORED PETITIONERS CONSTITUTIONAL
RIGHT TO BE PRESUMED INNOCENT WHEN IT RULED THAT THE BURDEN OF CONVINCING THE
_______________
HON. COURT THAT THE DELIVERIES OF THE ROAD MATERIALS ATTESTED TO HAVE BEEN
18 Id., at p. 180. RECEIVED BY THEM WERE NOT GHOST DELIVERIES RESTS WITH THE ACCUSED AND NOT
19 Id., at pp. 180-181. WITH THE PROSECUTION.
29
II
THE HONORABLE SANDIGANBAYAN ERRED IN CONVICTING PETITIONERS AS CO-

VOL. 531, AUGUST 24, 2007 29 CONSPIRATORS DESPITE THE PROSECUTION’S FAILURE TO SPECIFICALLY PROVE BEYOND
REASONABLE DOUBT THE FACTS AND CIRCUMSTANCES THAT WOULD IMPLICATE THEM AS
CO-CONSPIRATORS AND JUSTIFY THEIR CONVICTION.
in attendance, hereby sentences each of them to an indeterminate penalty ranging from six (6) years The Court’s Ruling
of prision correccional, as minimum, to ten (10) years, eight (8) months and one (1) day of prision mayor, as
maximum, with the accessory penalties provided by law, to pay a fine of Three Thousand Five Hundred We are not persuaded to nullify the verdict.
Pesos (P 3,500.00); to indemnify, jointly and severally the Republic of the Philippines in the 20
amount of
Thirty One Thousand Pesos (P 31,000.00); and, to pay their proportionate share of the costs. (Emphasis Petitioners’ guilt was established beyond reasonabledoubt
supplied.)
Petitioners mainly asseverate that their guilt was not shown beyond a peradventure of doubt and
QUIRANTE, MARIANO MONTERA, PEDRITO SEVILLE and EXPEDITO the State was unable to show that government funds were illegally released based on alleged
TORREVILLAS GUILTY beyond reasonable doubt as co-principals in the crime of Estafa thru falsification ghost deliveries in conjunction with false or fake tally sheets and other documents which they
of Public Documents as defined and penalized in Articles 318 and 171, in relation to Article 48 of the admittedly signed.
Revised Penal Code, and there being no modifying circumstances in attendance, hereby sentences each of We are not convinced.
them to an indeterminate penalty ranging from six (6) years of prision correccional, as minimum, to ten (10) Our Constitution unequivocally guarantees that in all criminal prosecutions, the accused shall
years, eight (8) months and one (1) day of prision mayor, as maximum, with the accessory penalties provided be presumed inno-
31 Damage: Damage may consist in the offended party being deprived of his money 25
or property as a
2. result of the defraudation, disturbance in property right, or temporary prejudice.
VOL. 531, AUGUST 24, 2007 31 For falsification

Fernan, Jr. vs. People 1. That the offender is a public officer, employee, or notary public;
2. That he takes advantage of his official position;
22
cent until the contrary is proved. This sacred task unqualifiedly means proving the guilt of the 3. That he falsifies
26
a document by committing any of the acts defined under Article 171 of the Revised
accused beyond a reasonable doubt. Definitely, “reasonable doubt” is not mere guesswork Penal Code.
whether or not the accused is guilty, but such uncertainty that “a reasonable man may entertain
after a fair review and consideration of the evidence.” Reasonable doubt is present when Before the SB, a Memorandum of Agreement (MOA) dated September 1, 1988 was entered into
between the State and the accused with the following stipulations and admissions:
“after the entire comparison and consideration of all the evidences, leaves the minds of the [judges] in that
condition that they cannot say they feel an abiding conviction, to a moral certainty, of the truth of the
_______________
charge; a certainty that convinces and directs the understanding,
23
and satisfies the reason and judgment of
those who are bound to act conscientiously upon it.” 24 People v. Hernando, G.R. No. 125214, October 28, 1999, 317 SCRA 617, 627.
25 L.B. Reyes, THE REVISED PENAL CODE Book Two 712-713 (13th ed., 1993).
A thorough scrutiny of the records is imperative to determine whether or not reasonable doubt 26 Id., at pp. 191-192.
exists as to the guilt of accused Fernan, Jr. and Torrevillas.
33
Petitioners were charged with the complex crime of estafa through falsification of public
documents as defined and penalized under Articles 318 and 171 in relation to Article 48 of the
Revised Penal Code, thus: VOL. 531, AUGUST 24, 2007 33
“ART. 318. Other deceits.—The penalty of arresto mayor and a fine of not less than the amount of the Fernan, Jr. vs. People
damage caused and not more than twice such amount shall be imposed upon any person who shall defraud
or damage another by any deceit not mentioned in the preceding articles of this chapter.
ART. 171. Falsification by public officer, employee; or notary or ecclesiastical minister.—The penalty “(1) To expedite the early termination of the instant cases and abbreviate the testimony of
of prision mayor and a fine not to exceed 5,000 pesos shall be imposed upon any public officer, employee, or Mrs. Delia Preagido, the prosecution and the accused have agreed to reproduce and adopt
notary who, taking advantage of his official position, shall falsify a document by committing any of the as the testimony of Preagido in the instant cases, her previous testimonies in Criminal
following acts: Cases Nos. 889, etc. (Mandaue City HED ’78 cases), on May 18 and 19, 1982 and in
xxxx Criminal Cases Nos. 1446-1789, etc. (Danao City HED ’77 cases) on November 10, 1987
and March 14, 1988, both on direct and cross examination x x x without prejudice to
_______________ whatever direct and/or cross examination question, that may be propounded by the
22 Art. III, Sec. 14 (2). Prosecution and the accused on said State witness, which questions will only be limited to
23 People v. Balacano, G.R. No. 127156, July 31, 2000, 336 SCRA 615, 621. the fake or irregular LAA’s and SACDC’s issued to Cebu I HED in 1977, the sale of such
fake or irregular LAA’s and SACDC’s issued to Cebu I HED in 1977, the sale of such fake
32 or irregular LAA’s and SACDC’s in said engineering district in the said year and the
participation of the accused thereon;
32 SUPREME COURT REPORTS ANNOTATED (2) That in the event Mrs. Delia Preagido is presented to testify as a State witness in the
instant cases without reproducing and adopting her previous testimonies in the Mandaue
Fernan, Jr. vs. People City HED ’78 and the Danao City HED ’77 cases, she will identify documents and exhibits
which have been previously marked and identified by other prosecution witness x x x.
4. Making untruthful statements in a narration of facts; (3) That in the previous testimonies of Mrs. Delia Preagido in the Mandaue City HED ’78 and
ART. 48. Penalty for complex crimes.—When a single act constitutes two or more grave or less grave the Danao City HED ’77 cases, she identified twenty-six separate lists containing names
felonies, or when an offense is a necessary means for committing the other, the penalty for the most serious of officials and employees of MPH, Regional Office No. VII, of the various Highways
crime shall be imposed, the same to be applied in its maximum period.”
Engineering Districts in MPH, Region VII, and the MPH Central Office who have
The complex crime is pruned into the following essential elements: allegedly received money or various sums from 1977 to 1978 out of the proceeds or sales of
fake LAA’s in 1977 and 1978 and, therefore, to obviate Mrs. Preagido’s previous testimony
For estafa of these lists, the Prosecution hereby reproduces and adopts specifically such testimony
and the markings of the lists, i.e., Exhibits ‘KKK,’ ‘KKK-1’ to ‘KKK-25’ in the Mandaue
1. Deceit: Deceit is a specie of fraud. It is actual fraud, and consists in any false representation or
City HED ’78 cases and Exhibits ‘0000’, ‘0000-1’ to ‘0000-25’ in the Danao City HED ’77
contrivance whereby one person overreaches and misleads another, to his hurt. There is deceit when
one is misled, either by guile or trickery or by other means, to believe to be true what is really false.
24
cases, substituted
27
or re-marked accordingly as ‘Exhibits ‘LL,, ‘LL-1’ to ‘LL-25’ in the
instant cases.”
_______________ Criminal Specific Main Items FAKE Amount
27 Rollo, pp. 66-67. Case No. Exhibits Documents Allegedly LAAs that of Fraud
Falsified Purchased authorized
34
purchase
2879 T-86-f- 1. General 1,400 cu. m. of Not PhP
1, etc. Voucher item 108 for numbered 28,000.00
Fernan, Jr. vs. People (Tally No. B-15; use in the contrary
Sheets) 2. Check repair of the to official
As a result of this MOA, the testimony of state witness Preagido on the modus operandi of the No. Cebu Hagnaya procedure
conspirators, or the unique and distinct method of procedure by which the mal-versation of public 9933064; Wharf road
funds in Region VII of the MPH was perpetrated and accomplished, dealt a major blow to the from Km.
defenses raised by petitioners. Preagido’s vital testimony, wherein she identified the methods, 50.30 to Km.
documents, exhibits, 28and other pertinent papers that led to the crafting of fake Letters of Advice 60.00
of Allotment (LAAs), general vouchers, disbursement of funds for non-existent projects, general
vouchers, and other documents, was not even successfully refuted or overturned by petitioners. 2880 T-87-f- 1. Request 1,400 cu. m. of Not, PhP
Preagido confirmed and admitted under oath that the illegal disbursement of public funds 1, etc. for item 108 for numbered 28,000.00
pertained to non-existent projects and was supported by fake LAAs, fake general vouchers, and (Tally Allocation use in the contrary
other pertinent papers that were also falsified. The fake LAAs and general vouchers were, in Sheets) of repair of the, to official
turn, supported by signed tally sheets that pertained to alleged ghost deliver- Allotment Bogo-Curva- procedure
101-12- Medellon road
_______________
105-76; 2. from Km.
28 Id., at pp. 69-72. On the basis of appropriations laws and upon request made by heads of agencies, the Ministry of General 110.00 to Km.
Budget releases funds to the various government agencies (in this case the MPH) via an Advice of Allotment (AA) and a Voucher 119.00
Cash Disbursement Ceiling (CDC). The AA is written authority for the MPH to incur obligations within a specified
amount in accordance with approved programs and projects. The CDC is written authority to pay. Upon receipt of the
No. B-55;
AA and CDC from the Ministry of Budget, the Central Office of the MPH prepares the Sub-Advice of Allotment (SAA) and 3. Check
the Advice of Cash Disbursement Ceiling (ACDC) for each region, in accordance with the disbursement allotment. These No.
are sent to the Regional Office (in this case Region VII). Upon receipt, the region’s Budget Officer prepares the
corresponding Letters of Advice of Allotment (LAAs) which are forwarded to the various districts of the
9933104;
region (in this case, the First Highway Engineering District; incidentally, the amount that goes to each district is already
indicated in the AA). Only upon receipt of the LAA is the district office authorized to incur obligations, that is,
2881 T-104-g- 1. Request Approximately Not PhP
spend public funds. (Emphasis supplied.) 1, etc. for 1,500 cu. m. of numbered 31,000.00
(Tally Allocation item 108 for contrary
35
Sheets) of use in the to official
Allotment repair and procedure
VOL. 531, AUGUST 24, 2007 35 101-2-56- rehabilitation
Fernan, Jr. vs. People 77; 2. of damaged
General roads and
Voucher bridges by
ies of road construction materials for non-existent or illegal projects.
No. B-245; Typhoon
The fake tally sheets, delivery receipts, reports of inspection, requests for supplies and
materials, and other related documents signed on separate occasions by petitioners, which were 3. Check Aring at the
attached as supporting documents to corresponding general vouchers; the alleged amounts and No. Tabogon-Bogo
quantities of road construction materials delivered; and the specific fake general vouchers, 9933294; provincial
checks, and other pertinent documents issued which led to the illegal disbursement of funds are road from Km.
summarized as follows: 92 to Km. 98
Petitioner Fernan, Jr.
36
36 SUPREME COURT REPORTS ANNOTATED Criminal Specific Main Items FAKE Amount
Case No. Exhibits Documents Allegedly LAAs that of Fraud
purchase
2885 T-89-f- 1. Materials for Not PhP
1, etc. Request use in the numbered 30,000.00 2855 T-33-f 1. Request 153.63 m. Not PhP
(Tally for repair and contrary (Delivery for t. of item numbered 48,431.85
Sheets) Allocation rehabilitation to official Receipt); Allocation 310 for contrary
of of the Daan- procedure T-33-f-1 of use in to official
Allotment Bantayan (Daily Allotment asphalting procedure
101-12- road from Tally 101-10- of the
112-76; 2. Km. 127.00 Sheet); 186-76; 10- Toledo-
General to Km. 136 190-76; 10- Tabuelan
Voucher 192-76; 10- road from
No. B-76; 188-76; 10- Km.
3. Check 180-76; 2. 108.34 to
No. General Km.
9933125; Voucher 109.52
No. B-613;
2914 T-115- 1. 1,200 cu. m. PhP 3. Check
g-1, General of item 108 27,000.00 No.
etc. Voucher for use in the 9403099;
(Tally No. B- rehabilitation
Sheets) 927; 2. of the Cajel- 2856 T-34-f 1. Request 153.76 m. Not PhP
Check Lugo, Barbon (Delivery for t. of item numbered 48,472.84
No. barangay Receipt); Allocation 310 for contrary
9403425; road T-34-f-1 of use in the to official
(Daily Allotment asphalting procedure
2918 T-116- 1. 1,500 cu. m. Not PhP Tally 101-10-15- of the
f-1, etc. General of item 108 numbered 30,000.00 76; 9-201- Toledo-
(Tally Voucher for the contrary 76; 8-152- Tabuelan
Sheets) No. B- rehabilitation to official 76; 8-153- road from
107; 2. of the Cebu procedure 76;9- Km
Check North 108.34 to
No. Hagnaya
9933157; Wharf road 37
from Km. 71
to Km. 76
VOL. 531, AUGUST 24, 2007 37
Petitioner Torrevillas Fernan, Jr. vs. People
Criminal Specific Main Items FAKE Amount
Sheet); 181-76; 9- Km. 109.52
Case No. Exhibits Documents Allegedly LAAs that of Fraud
184-76
2.
purchase
General
Voucher
No.B-619;
3. Check T- 113-d 2. Check Buanoy-
No. (Report of No. Cantibas,
9403105; Inspection); 9403426; Balaban
T-113-c barangay
2858 T-35-f 1. 151.35 m. t. Not PhP
(Abstract of road
(Delivery Request of item 310 numbered 47,713.09
Sealed
Receipt); T- for for use in the contrary
Quotation)
35-f-1 (Daily Allocation asphalting of to official
Tally Allotment the Toledo- procedure 2910 T-114-c 1. 1,200 cu. m. Not PhP
Sheet); 101-6- Tabuelan (Request for General of item 108 numbered 27,900.00
234-76; 6- road from Supplies Voucher for use in the contrary
237-76; 6- Km. 108.34 and Equip- No. B- rehabilitation to official
239-76; 6- to Km. 929; of the Magay- procedure
241-76;6- 109.52 2. Check Canamukan,
240-76 No.
2. 9403427;
General
Voucher 38
No. B-
629; 38 SUPREME COURT REPORTS ANNOTATED
3. Check
No. Fernan, Jr. vs. People
9403115;
2859 T-36-f 1. 110.01 m. t. Not PhP ment); T- Compostela
(Delivery Request of item 310 numbered 34,680.65 114-e barangay
Receipt); T- for for use in contrary (Report of road
36-f-1 (Daily Allocation asphalting of to official Inspection);
Tally of the Toledo- procedure T-114-f
Sheet); Allotment Tabuelan (Abstract of
101-7-63- road from Sealed
76; 8-102- Km. 108.34 Quotation)
76; 8-121- to Km.109.52 2914 T-115-c 1. 1,200 cu. m. Not PhP
76 (Request for General of item 108 numbered 27,000.00
2. Supplies Voucher for use in the contrary
General and No. B- rehabilitation to official
Voucher Equipment); 927; of the Cajel- procedure
No. B- T- 115-e 2. Check Lugo, Barbon
631; (Report of No. barangay
3. Check Inspection); 9403425; road
No. T-115-f
9403117; (Abstract of
2909 T-113-b 1. 1,200 cu.m. Not PhP Sealed
(Request for General of item 108 numbered 27,900.00 Quotation)
Supplies Voucher for use in the contrary 2919 T-117-g 1. 1,550 cu. m. Not PhP
and No. B- rehabilitation to official (Delivery General of item 108 numbered 31,000.00
Equipment); 928; of the procedure Receipt); T- Voucher for use in the contrary
117-g-1, etc. No. B- repair and to official to the said suppliers despite the fact that the latter did not make any deliveries in accordance
(Daily Tally 244; rehabilitation procedure with projects allegedly funded by mostly fake LAAs.
Sheets) 2. Check of damaged The accusation that there were no actual deliveries of road construction and maintenance
No. roads and materials in support of projects or otherwise funded by LAAs was proven true by the testimonies
of the various barangay captains and residents of the barangay who were supposed to be
9933293; bridges at
benefited by the construction and repair activities of the Cebu First Highway Engineering
the Toledo- District. The testimonies of these barangay captains and residents are summarized as follows:
30
Tabuelan
national road “1. MACARIO LIMALIMA, Barangay Captain of Barangay Antipolo, Medellin, Cebu,
from Km. 71 testified that his barangay is traversed by the national highway stretching to a distance
to Km. 83 of 2 kilometers and 750 meters (Km. 122; Km. 123 to 125). He described the road as full of
potholes. Except for filling up these potholes with “anapog” or crushed limestone, no
2932 1. 250 gals of Not PhP major repairs were undertaken on the said road in 1978 or in previous years. (TSN., pp. 6-
31
Request aluminum numbered 44,762 58 14, June 5, 1986).
for paint 324 contrary
Allocation gals of red to official _______________
of lead paint for procedure
29 Id., at pp. 15, 17, 94-96, 131, 134 & 206-207.
Allotment use in the 30 Id., at pp. 84-86 & 88.
101-7-83- maintenance 31 Id., at p. 84.
76; 7-84- of national

40
76; 7-124- roads and
76;8-153- bridges
76; 8-170- 40 SUPREME COURT REPORTS ANNOTATED
76; Fernan, Jr. vs. People
2.
General
2. FELOMINO ORBISO, Barangay Captain of Cawit, Medellin, Cebu, from 1972 to 1981,
Voucher
testified that his barangay is traversed by the national highway, stretching from Km. 125
B-643; to Km. 127.9. He described the road as a rough or dirt road. No improvement was ever
3. Check made on this road whether during the year when he gave his statement to the NBI (1978)
No. or in previous years. The road remained in bad shape, with numerous potholes which the
32
9403130; camineros merely filled up with limestone. (TSN., pp.14-19, June 5, 1986).
3. TIMOTEO ANCAJAS, Barangay Captain of Paypay, Daan Bantayan, Cebu, from 1972
On the part of petitioners, they readily admitted that they either signed the tally sheets and/or to 1982, testified that his barangay is traversed by the national highway, stretching from
delivery receipts, reports Km. 132 to Km. 134 ½ a distance of 2 ½ kilometers. He described the portion of the
highway as a rough road with potholes. He stated that the only improvement done on this
39
road was the filling up of the potholes with “anapog” or crushed limestone and this was
done only once in 1977. It even took the camineros three months from the time the 33
VOL. 531, AUGUST 24, 2007 39 limestones were delivered to start working on the road. (TSN., pp. 20-26, June 5, 1986).
4. LUCIA PEÑAFLOR, Barangay Captain of Don Pedro, Bogo, Cebu, from 1966 to 1982,
Fernan, Jr. vs. People testified that her barangay is traversed by the national highway, stretching from Km. 103
to Km. 105 ½ up to the boundary of San Remigio, and from the boundary to Daan
of inspection, requests for supplies and materials, and other related documents which became Bantayan, a distance of more than 3 kilometers. It was only in 1984 or 1985 when this
part of the supporting documents29
that led to the issuance of general vouchers and eventually the portion of the national highway was asphalted. Prior to that, the road was maintained by
disbursement of public funds. The tally sheets are statements of delivery that purportedly filling up the potholes with crushed limestone or “anapog.” These potholes started to
indicated the specified quantities of materials for the construction and maintenance of roads that appear between January and June of 1977. However, as alleged by her in her affidavit
have been delivered on supposed project sites on given dates at specific places. (Exh. “II-1-d”), these34potholes were filled up only from January to June, 1978. (TSN, pp.
As a result of petitioners’ signatures in the tally sheets and/or delivery receipts, reports of 28-46, June 5, 1986).
inspection, requests for supplies and materials, and other supporting documents—which became 5. MARCELO CONEJOS, Barangay Captain of Tapilon, Daan Bantayan, from 1972 to
the basis for payment to suppliers—public funds were released via general vouchers and checks 1982, testified that his barangay is traversed by the national highway, stretching from
38 Id.,
Km. 130 to Km. 134, or a distance of 4 kilometers. In 1977, said portion of the national at pp. 85-86.
highway was in bad condition and that nothing was done to 42
_______________
32 Id.
33 Id. Fernan, Jr. vs. People
34 Id., at pp. 84-85.
39
41 of the 1 ½ kilometers traversing their barangay. (TSN., pp. 90-99, June 5, 1986).
10. LEONARDO PINOTE, Barangay Captain of Barangay Argawanon, San Remigio, Cebu,
from 1972 to 1980, testified that his barangay is traversed by the national highway
VOL. 531, AUGUST 24, 2007 41
covering a distance of ½ kilometers more or less. In 1977, this portion of the national
Fernan, Jr. vs. People highway was a rough road with potholes. In the same year, camineros worked on the
road, using wheelbarrows, shovels 40
and rakes, pitching up the potholes with anapog.
(TSN., pp. 29-35, June 6, 1986).
improve it until 1982, except for the time 35when the potholes were filled up with crushed
limestones. (TSN, pp. 48-56, June 5, 1986). 11. PEDRO ORSAL, Barangay Captain of Poblacion, San Remigio, Cebu, from January 1972
to 1980, testified that his barangay is traversed by the national highway, from Km. 107 to
6. REMEDIOS FELICANO, Barangay Captain of Looc, San Remigio, Cebu from 1977 to
Km. 110, or a distance of three kilometers more or less. In 1977, the road from Km. 107 to
1982, testified that her barangay is traversed by the national highway, stretching form
Km. 108 was a gravel road. It was properly maintained by the highways people, and every
Km. 109 to Km. 110. She described said portion of the national highway as “stoney.” The
time potholes appeared on the road, they would be filled-up with anapog. This material
only maintenance work undertaken to improve the road was the filling up of potholes
was dumped along the road by trucks of the Bureau of Public Highways. On the other
with crushed 36limestone which caminerosgathered from the roadside. (TSN., pp.57-67,
hand, the road leading to the heart of the poblacion was asphalted, but with potholes. In
June 5, 1986).
1977, the potholes were filled up by camineros with gravel delivered by dump trucks of
7. ALBERTO BRANSUELA, a resident of BarangaySan Jose, Catmon, Cebu, from 1974 to the Bureau of Public Highways. It was only in 1978 when the road was reasphalted and
1978, testified that barangay San Jose is traversed by the national highway (Km. 58), extended from the junction of the poblacion to the adjacent barrio of Looc. x x x (TSN., pp.
covering a distance of ½ kilometer more or less. He stated that while this portion of the 36-45, June 6, 1986).”
41
national highway was already asphalted as of 1977, there were potholes which
the camineros filled
37
up with anapog taken from the roadside. (TSN., pp. 69-80), June 5, The inescapable conclusion from the aforementioned testimonies of the barangay captains and
1986). residents of Cebu whose respective barangay are traversed by the national highway is that there
8. CARIDAD PUNLA, Acting Barangay Captain of Barangay Corazon, Catmon, Cebu, from were no actual major repair works undertaken on the national highway except the filling of
1977 to 1982, testified that the Poblacion of Catmon is traversed by the national highway, potholes by crushed limestone (anapog). Clearly, there were no deliveries of supplies and
stretching from Km. 57 to Km. 58. In 1977, only more than ½ of this portion of the materials for asphalting and repair of roads described in the tally sheets and other supporting
national highway was cemented while the remaining portion was asphalted. While said documents signed by petitioners.
portion of the national highway already had cracks and potholes as of 1977, the real
problem was the uneven elevation of the surface of the shoulder of the road. No general _______________
repair was undertaken by the authorities to correct the uneven elevation, except for the
39 Id., at p. 86.
work done
38
by the camineros who covered up the potholes. (TSN., pp. 81-89, June 5,
40 Id., at p. 88.
1986). 41 Id.
9. FELIPE MOLIT, Barangay Captain of Bao, Sugud, Cebu, from 1975 to 1982, testified
that barangayBao was traversed by the national highway, stretching from Km. 59 to Km. 43
60 ½. He described said portion of the national highway as a gravel road surfaced
with anapog. In 1977, the said road already had potholes which maintenance men filled
VOL. 531, AUGUST 24, 2007 43
up with anapog beginning in March, 1977. The anapog was hauled in from Km. 64, the
usual excavation place of anapog. It took only 3 truckloads of anapog to cover the entire Fernan, Jr. vs. People
length
While petitioner Torrevillas presented Vice-Mayor Emigdio Tudlasan of Tabuclan, Cebu, who
_______________ testified that he saw the asphalting of the Tabuclan Road from kilometers 18 to 19, said
35 Id., at p. 85.
testimony is not conclusive on the actual delivery of the supplies indicated in the tally sheets, as
36 Id. Tudlasan was not present at the time of alleged delivery. Moreover, his testimony runs counter to
37 Id. the testimonies of BarangayCaptain Remedios Feliciano of Looc, San Remigio, Cebu
45 Id.,
and Barangay Captain Pedro Orsal of Poblacion, San Remigio, Cebu. Feliciano testified that she at p. 182.
was BarangayCaptain of Looc, San Remigio, Cebu from 1977 to 1982; that her barangay is 45
traversed by the national highway, stretching from km. 109 to km. 110; and that the only work
undertaken to improve the road was the filling up of potholes with crushed limestone
which camineros gathered from the roadside. On the other hand, Orsal testified that he VOL. 531, AUGUST 24, 2007 45
was Barangay Captain of Poblacion, San Remigio, Cebu, from January 1972 to 1980; that
his barangay is traversed by the national highway, from km. 107 to km. 110; that in 1977, the Fernan, Jr. vs. People
road from km. 107 to km. 108 was a gravel road maintained by the highways people, and every
time potholes appeared on the road, they would be filled-up with anapog, which was dumped These checks were allegedly paid to suppliers Juliana de los Angeles (Criminal 46
Case Nos. 2879,
along the road by the Bureau of Public Highways; and that it was only in 1978 when the road was 2880, 2881, 2885, and 2914) and Ismael Sabio, Jr. (Criminal Case No. 2918).
re-asphalted and extended from the junction of the poblacion to the adjacent barrio of Looc. On his part, petitioner Torrevillas voluntarily admitted to signing tally sheets, reports of
Compared to the testimony of Vice-Mayor Tudlasan, the testimonies of Barangay Captains inspection, requisitions of supplies and 47equipment, and other pertinent documents totaling an
Feliciano and Orsal are entitled to more weight and credit, and are more credible considering the even greater amount of PhP 337,861.01, including PhP 48
27,000 in Criminal Case No. 2914 where
fact that they are residents of the area where the road supposedly to be repaired is located plus petitioner Fernan, Jr. was among the co-accused. These documents signed by petitioner
the fact that they saw only limestone, not asphalt, that was used in the repair of the road in 1977. Torrevillas were likewise attached as supporting papers to fake general vouchers which
The testimonies of Feliciano and Orsal are further buttressed by the findings and statements of facilitated the release of check payments to suppliers.
government witnesses, namely—Ruth Inting Paredes, Supervising Commission on Audit (COA) These checks were allegedly paid to suppliers Rufino V. Nuñez (Criminal Case Nos. 2855,
Auditor assigned to Region VII; Felicitas Cruz Ona, Supervising COA Auditor assigned to the 2856, 2858, and 2859), Juliana de los Angeles (Criminal Case Nos. 2909, 2910, and 2914),
49
Ismael
main COA office; Federico A. Malvar, Senior Sabio, Jr. (Criminal Case No. 2919), and Manuel Mascardo (Criminal Case No. 2932).
These general vouchers and checks could not be traced to genuine LAAs. Ergo, there were no
44
actual deliveries of supplies and materials for the road repair and rehabilitation in Region VII,
which were the subjects of the criminal cases where petitioners were charged.
44 SUPREME COURT REPORTS ANNOTATED We find no reason to disturb the findings of the court a quo that all the essential elements of
the crime of estafa through falsification of public documents were present. There is no question
Fernan, Jr. vs. People that petitioners, at the time of the commission of the crime, were public officers—civil engineers
—assigned to the MPH. Their signing of tally sheets and related documents pertaining to the
National Bureau of Investigation (NBI) Agent of the Anti-Graft Section and member of the COA alleged deliveries of supplies for road repair and construction constitutes intervention and/or
NBI team assigned to investigate the anomalies; Rogelio C. Mamaril, Supervising NBI Agent of taking advantage of their official positions, especially considering that
the Anti-Fraud and Action Section; and Delia Comahig Preagido, Accountant III, MPH, Region
VII—to the effect that the general vouchers and LAAs that corresponded to the aforementioned _______________
tally sheets signed by petitioner Torrevillas were fake or falsified. Undeniably, the government 46 Records, Informations Envelope Vol. 1 (of 6 volumes).
witnesses have no motive to testify falsely against petitioner Torrevillas and, hence, credible. We 47 Rollo, pp. 161-162, 180, 182, 184 & 188.
conclude that there were no actual deliveries of supplies for asphalting of road and repair on 48 Id., at p. 182.
kilometers 108 and 109, which were the subjects of Criminal Case Nos. 2855, 2856, 2858, and 49 Id.
2859.
46
Glaring is the finding of the SB that the Cebu First Highway Engineering District, to which
petitioners were assigned, had fake LAAs totaling to PhP 4,924,366.50,
42
while the fake Cash
Disbursement Ceilings issued amounted to PhP 6,271,150. The Cebu First Highway 46 SUPREME COURT REPORTS ANNOTATED
Engineering 43District had also issued checks per unrecorded reports in the total sum of PhP
1,135,176.82. Therefore, the total illegal disbursements in the Cebu First Highway Engineering Fernan, Jr. vs. People
District alone were a staggering PhP 12,330,693.32 circa 1977.
Of this total, petitioner Fernan, Jr. freely admitted signing tally sheets which pertained to they had the duty to inspect the purported deliveries and ascertain the veracity of the documents
non-existent
44
deliveries of road construction supplies and materials totaling PhP and the statements contained in them.
146,000, including PhP45
27,000 in Criminal Case No. 2914 where petitioner Torrevillas was The tally sheets bearing their signatures contained false recitals of material facts which the
among the co-accused. These tally sheets were attached as the supporting papers to fake general petitioners had the duty to verify and confirm. These tally sheets were attached as supporting
vouchers which facilitated the release of check payments to suppliers. documents to fake LAAs and subsequently became the bases for the disbursement of public funds
to the damage and prejudice of the government. Indubitably, there exists not even an iota of
_______________ doubt as to petitioners’ guilt.
42 Id., at p. 78.
The essential elements of estafa through falsification of public documents are present in the
43 Id., at p. 79. cases against petitioners, as follows:
44 Id., at pp. 170-172 & 182-183.
48
1. Deceit: Petitioners Fernan, Jr. and Torrevillas made it appear that supplies for road
construction and maintenance were delivered by suppliers allegedly in furtherance of
alleged lawful projects when in fact said supplies were not delivered and no actual
asphalting or repair of road was implemented. In doing so, petitioners:
1.1. Were public officers or employees at the time of the commission of the offenses;
1.2. Took advantage of their official position as highway engineers; and were in fact, connected and cooperative, indicating a closeness of personal association and a concurrence of
1.3. Made untruthful statements in several narrations of fact. sentiment. To hold an accused guilty as a co-principal by reason of conspiracy, he must be shown to have
performed an overt act in pursuance or furtherance of the complicity. There must be intentional 50
participation in the transaction with a view to the furtherance of the common design and purpose.”
2. Damage: The government disbursed PhP 146,000 in the case of Fernan, Jr. and PhP
337,861.01 in the case of Torrevillas, as payments to various suppliers for the delivery of In Estrada v. Sandiganbayan, we categorized two (2) structures of multiple conspiracies, namely:
non-existent supplies. (1) the so-called “wheel” or “circle” conspiracy, in which there is a single person or group (the
“hub”) dealing individually with two or more other persons or groups (the “spokes”); and (2) the
By way of defense, petitioners posit that the tally sheets and other documents could in fact be “chain” conspiracy, usually involving the distribution of narcotics or other contraband, in which
traced to genuine LAAs that were in the custody of the NBI. Unfortunately, these genuine LAAs there is successive communication and cooperation in much the same way as with legitimate
were not introduced in evidence. It is an age-old axiom that s/he who alleges something must business operations between manufacturer and wholesaler, then wholesaler and retailer, and
51
prove it. Petitioners’ assertion that the documents they signed were all then retailer and consumer.
47 We find that the conspiracy in the instant cases resembles the “wheel” conspiracy. The 36
disparate persons who constituted the massive conspiracy to defraud the government were
controlled by a single hub, namely: Rolando Mangubat (Chief Accountant), Delia Preagido
VOL. 531, AUGUST 24, 2007 47 (Accountant III), Jose Sayson (Budget Examiner), and Edgardo Cruz (Clerk II), who controlled
the separate “spokes” of the conspiracy. Petitioners were among the many spokes of the wheel.
Fernan, Jr. vs. People We recall the painstaking efforts of the SB through Associate Justice Cipriano A. Del Rosario,
Chairperson of the Third Division, in elaborating the intricate web of conspiracy among the
genuine and duly covered by genuine LAAs was substantiated only by their own self-serving and accused, thus:
uncorroborated testimonies. We hesitate to give much weight and credit to their bare testimonies
in the face of clear, convincing, overwhelming, and hard evidence adduced by the State. Mangubat enticed Preagido, Cruz and Sayson to join him. All three agreed to help him carry out
his plan. They
If the genuine LAAs were vital to their defense, and they firmly believed that the documents
were indeed in the custody of the NBI, then petitioners could have easily procured the
_______________
compulsory process to compel the production of said documents. However, petitioners miserably
failed to avail of subpoena duces tecum which the court a quo could have readily granted. The 50 G.R.
51 G.R.
Nos. 131926 & 138991, June 18, 2003, 404 SCRA 275, 291.
No. 148965, February 26, 2002, 377 SCRA 538, 556-557.
inability to produce such important and exculpatory pieces of evidence proved disastrous to
petitioners’ cause. Their conviction was indeed supported by proof beyond reasonable doubt which 49
was not overturned by defense evidence.
Petitioners acted in conspiracy with one another VOL. 531, AUGUST 24, 2007 49
Petitioners vigorously claim error on the part of the lower court when it made the finding that Fernan, Jr. vs. People
they were co-conspirators with the other parties accused despite the dearth of evidence to amply
demonstrate complicity. typed fake LAAs during Saturdays. Cruz and Sayson also took charge of negotiating or selling fake LAAs to
We are not convinced by petitioners’ postulation. contractors at 26% of the gross amount. Preagido manipulated the general ledger, journal vouchers and
Indeed, the burden of proving the allegation of conspiracy falls to the shoulders of the general journal through negative entries to conceal the illegal disbursements. In the initial report of COA
prosecution. Considering, however, the difficulty in establishing the existence of conspiracy, auditors Victoria C. Quejada and Ruth I. Paredes it was discovered that the doubtful allotments and other
settled jurisprudence finds no need to prove it by direct evidence. In People v. Pagalasan, the anomalies escaped notice due to the following manipulations:
Court explicated why direct proof of prior agreement is not necessary: “The letter-advices covering such allotments (LAA) were not signed by the Finance Officer nor (sic) recorded in the books
of accounts. Disbursements made on the basis of these fake LAAs were charged to the unliquidated obligations (Account
“After all, secrecy and concealment are essential features of a successful conspiracy. Conspiracies are 8-81-400), although the obligations being paid were not among those certified to the unliquidated obligations (Account 8-
clandestine in nature. It may be inferred from the conduct of the accused before, during and after the 81-400) at the end of the preceding year. To conceal the over-charges to authorized allotments, account 8-81-400 (sic)
commission of the crime, showing that they had acted with a common purpose and design. Conspiracy may and the excess of checks issued over authorized cash disbursements ceiling, adjustments were prepared monthly
be implied if it is proved that two or more persons aimed their acts towards the accomplishment of the same through journal vouchers to take up the negative debit to Account 8-81-400 and a negative credit to the Treasury
unlawful object, each doing a part so that their combined acts, though apparently independent of each other, Checking Account for Agencies Account 8-70-790. These journal vouchers in effect cancelled the previous entry to record
the disbursements made on the basis of fake LAAs. Thus the affected accounts (Accounts 8-81-400 and 528-70-790), as Supplier No. Kind of Measurement Amount
appearing in the trial balance, would not show the irregularity. The checks, however, were actually issued.”
ofVouchers Materials
The four formed the nucleus of the nefarious conspiracy. Other government employees,
tempted by the prospect of earning big money, allowed their names to be used and signed Florencio 10 Item 108 7,800 cu.m. 156,000.00
spurious documents. Gacayan
xxxx
3. Cebu First Highway Engineering District Anomalies Ismael 6 Item 108 6,198 cu.m. 123,960.00
Focusing our attention now on the anomalies committed in the Cebu First District Engineering District, Sabio, Jr.
hereinafter referred to as the Cebu First HED for brevity, the Court finds that the same pattern of fraud
employed in the other highway engineering districts in MPH Region VII was followed. The Cebu First HED 51
received from
_______________ VOL. 531, AUGUST 24, 2007 51

52 Rollo, p. 106.
50
FBS 3 Lumber 70,610.00

50 SUPREME COURT REPORTS ANNOTATED Marketing
Fernan, Jr. vs. People Cebu 2 Hollow 19,880.00
Hollow Blocks
Region VII thirty-four Letters of Advice of Allotment (LAAs) in the total sum of P4,734,336.50 and twenty- Blocks
nine (29) corresponding SubAdvices of Cash Disbursement Ceiling (SACDCs), amounting to P5,160,677.04
for the period January 1, 1977 to December 31, 1977. But apart from this, the Cebu First HED appears to Bienvenido 4 Equip. 29,580.00
have also received for the same period another set of eighty-four (84) LAAs amounting to P4,680,694.76 Presillas Rental
which however, could not be traced to any Sub-Advice of Allotment (SAA) OR MATCHED TO THE Advices
of Cash Disbursement Ceiling (ACDCs) received from the MPH and Regional Office. This is highly irregular T.R. 1 Office 7,461.90
and not in consonance with accounting procedures. Eustaquio Supplies
It was also made to appear that the payments were made for alleged prior year’s obligations and Ent.
chargeable to Account 81-400, obviously because, they were not properly funded. Furthermore, the list of
projects in Region VII for 1977 showed that Cebu first HED completed rehabilitation and/or improvement of Santrade 1 Johnson 8,392.90
roads and bridges in its districts from February to May, 1977, with expenditures amounting to P613,812.00. Mktg. Products
On the other hand, the expenditures for barangay roads in the same district in 1977 amounted to
P140,692.00, and these were all completed within the period from November to December, 1977. These Pelagia 1 Item 2,000 cu.m. 40,000.00
completed projects were properly funded by legitimate LAAs and CDCs in the total amount of only Gomez 108
P754,504.00. However, an additional amount of P3,839,810.74, was spent by the Cebu First HED for
maintenance of roads and bridges for the same year (1977) but the same could not be traced to any M&M 1 Paints 49,736.20
authoritative document coming from the MPH. Ent.
The following payments for materials purchased for the year 1977 were made to appear as payment for
prior year’s obligation and were paid out of fake LAAs: Freent 1 Office 590.20
Ind. Supplies
Supplier No. Kind of Measurement Amount
ofVouchers Materials Total……… P2,505,147.00
Rufino 29 Item 310 4,640,275 mt P1,374,135.00
The NBI also discovered that there were purchases of materials in 1977 that were charged to
Nuñez
current obligations but paid out of spurious LAAs, to wit:
J. delos 21 Item 108 22,290 cu.m. 433,300.00
Angeles Supplier No. of Kind of Measurement Amount
Vouchers Materials
Iluminada 11 Item 108 8,325 cu.m. 191,500.00
Vega Rufino 11 Item 310 162,549 m.t. P529,475.00
Nuñez Item 108 5,000 cu.m.
Supplier No. of Kind of Measurement Amount the other accused, for such requirement, in many cases, would border on near impossibility. The
Vouchers Materials State needs to adduce proof only when the accused committed acts that constitute a vital
connection to the chain of conspiracy or in furtherance of the objective of
Juliana 16 Item 108 13,280 cu.m. P276,400.00
delos Item 111 1,00 cu.m. 24,000.00 _______________
Angeles Item 200 307 cu.m. 7,982.00 53 Id., at pp. 107-109.
Iluminada 3 Item 108 3,600 cu.m. 72,090.00
53
Vega
Florencio 2 Item 108 2,400.00 48,000.00 VOL. 531, AUGUST 24, 2007 53
Gacayan cu.m.
Vicon 1 Steel 19,042.74
Ent. Frame
the conspiracy. In the case at bench, the signing of the fake tally sheets and/or delivery receipts,
Ismael 5 Item 108 6,950 cu.m. 139,000.00 reports of inspection, and requests for supplies and materials by petitioners on separate occasions
Sabio, Jr. is vital to the success of the Mangubat Group in siphoning off government funds. Without such
fabricated documents, the general vouchers covering the supply of materials cannot be properly
Jabcyl 3 Bridge 128,764.80 accomplished and submitted to the disbursing officer for the preparation of checks.
Mktg. Materials State witness Ruth Paredes, Supervising COA Auditor, elaborated on the procedure regarding
the award of the contract more specifically to the payment of the contractor or supplier. Once the
Total……… P1,339,663.74
Request for Supplies and Equipment is approved by the Regional Office, the Request for
Obligation of Allotment (ROA) or the request for funds is signed by the District Engineer
Grand Total ………. P3,839,810.74 pursuant to the approved plans and budget and signed by the district accountant as to
52 availability of funds.
The district office will advertise the invitation to bid and award the contract to the lowest
bidder. The Purchase Order (PO) is prepared and addressed to the winning bidder. Upon delivery
52 SUPREME COURT REPORTS ANNOTATED of the supplies and materials, the supplier bills the district office for payment. Consequently, the
requisitioning officer will prepare the general voucher which must be accompanied by the
following documents:
A total of 132 General Vouchers, emanating from fake LAAs and ACDCs, were traced back to Rolando a. The ROA;
Mangubat, Regional Accountant of Region VII and Adventor Fernandez, Regional Highway Engineer, also of b. The PO;
Region VII. Those LAAs and ACDCs became the vehicles in the disbursement of funds amounting to
P3,839,810.74, through the vouchers purportedly issued for the purchase and delivery of the aforementioned c. The abstract of Bid together with the Bid quotations;
materials allegedly used for the maintenance and repair of the national highways within the Cebu First d. The delivery receipts together with the tally sheets; and
HED. Despite the enormous additional expenditure of P3,839,810.74, the roads and bridges in the district, e. The tax clearance and tax certificate of the supplier.
as found out by the NBI, did not show any improvement (Exhibit “II”). As testified to by
several barangay captains, the road maintenance consisted merely of spreading anapog or limestone on
potholes of the national Highway. After the preparation and submission of the general voucher and the supporting documents, the
Obviously, the vouchers for payments of alleged maintenance of roads and bridges in the additional disbursing officer shall prepare and draw a check based on said voucher. The check is
amount of P3,839,810.74 were prepared for no other purpose than to siphon off the said amount from the countersigned by an officer of the district office
government coffer into the pockets of some officials and employees of Region VII 53and the Cebu First ED, as
well as the suppliers and contractors who conspired and confederated with them.” 54
After a close re-examination of the records, the Court finds no reason to disturb the finding of the
anti-graft court that petitioners are co-conspirators of the other accused, headed by Chief
Accountant Rolando Mangubat, who were similarly convicted in practically all the 119 counts of Fernan, Jr. vs. People
estafa. Undisturbed is the rule that this Court is not a trier of facts and in the absence of strong
and compelling reasons or justifications, it will accord finality to the findings of facts of the SB.
The feeble defense of petitioners that they were not aware of the ingenuous plan of the group of and/or the COA Regional Director based on the amount of the check.
accused Mangubat and the indispensable acts to defraud the government does not merit any Thus, it is clear that without the tally sheets and delivery receipts, the general voucher cannot
consideration. The State is not tasked to adduce direct proof of the agreement by petitioners with be prepared and completed. Without the general voucher, the check for the payment of the supply
cannot be made and issued to the supplier. Without the check payment, the defraudation cannot _______________
be committed and successfully consummated. Thus, petitioners’ acts in signing the false tally
sheets and/or delivery receipts are indispensable to the consummation of the crime of estafa thru
falsification of public documents. Surely, there were ghost or false deliveries of supplies and
materials as convincingly shown by the testimonies of the barangay captains, officials, and
residents of the areas where the materials were allegedly used. More importantly, if there were
actual deliveries of materials made, then there would be no need to fake the LAAs because the
suppliers will have to be paid the cost of said materials plus a reasonable profit. As a result, there
is nothing or not much to share with the more than 30 or so co-conspirators, for the suppliers
would not be too dim-witted to part with even their cost in buying the materials they allegedly
supplied. Moreover, the fake delivery receipts and tally sheets signed by petitioners were linked
to the general vouchers upon which check payments were made to the suppliers who were found
guilty of participating in the fraud. With respect to petitioner Fernan, Jr., he signed tally sheets
on the ghost deliveries of Juliana de los Angeles and Ismael Sabio, Jr. On the part of petitioner
Torrevillas, he signed false tally sheets and delivery receipts on supplies allegedly delivered by
Rufino V. Nuñez, Juliana de los Angeles, Ismael Sabio, Jr., and Manuel Mascardo. Lastly, the
checks issued to these suppliers based on general vouchers supported by the false tally sheets
and general vouchers signed by petitioners cannot be traced to any genuine LAAs, resulting in
the inescapable conclusion that these LAAs were unauthorized; hence, fake or fabricated. These
are undisputed tell-tale signs of the complicity by petitioners with the Mangubat syndicate.
55
VOL. 531, AUGUST 24, 2007 55

In People v. Mangubat, the court a quo elucidated the conspiracy in the Cebu highway scam in a
trenchant manner:
“Where the acts of each of the accused constitute an essential link in a chain and the desistance of even one
of them would prevent the chain from being completed, then no conspiracy could result as its consummation
would then be impossible or aborted. But when each and everyone of the accused in the instant cases
performed their assigned tasks and roles with martinet-like precision and accuracy, by individually
performing essential overt acts, so much so that the common objective is attained, which is to secure the
illegal release of public funds under the guise of fake or simulated public documents, then each and
everyone of said accused are equally liable as co-principals under the well-established and universally-
accepted principle that, once a conspiracy is directly or impliedly proven, the act of one is the act of54 all and
such liability exists notwithstanding no-participation in every detail in the execution of the offense.”
In sum, the required quantum of proof has been adduced by the State on the conspiracy among
the accused including petitioners. The conviction of petitioners must perforce be sustained.
WHEREFORE, we DENY the petition and AFFIRM the December 4, 1997 Decision of the SB
in the consolidated criminal cases subject of this petition.
No costs.
SO ORDERED.
Quisumbing (Chairperson), Carpio, Carpio-Moralesand Tinga, JJ., concur.
Petition denied, decision of SB affirmed.
Notes.—“Switching of official ballots with simulated ballots” is an election-related incident,

not an ordinary act of

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Criminal Law; Presumption of Innocence; Words and Phrases;Definitely, “reasonable doubt” is not mere

THE HONORABLE SANDIGANBAYAN ERRED IN CONVICTING PETITIONERS AS CO-

VOL. 531, AUGUST 24, 2007 31 For falsification

76; 7-84- of national

_______________ VOL. 531, AUGUST 24, 2007 51

FBS 3 Lumber 70,610.00

VOL. 531, AUGUST 24, 2007 55

Quisumbing (Chairperson), Carpio, Carpio-Moralesand Tinga, JJ., concur.

Petition denied, decision of SB affirmed.

Notes.—“Switching of official ballots with simulated ballots” is an election-related incident,

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