THIRD DIVISION

[G.R. No. 259467. November 11, 2024.]

PEOPLE OF THE PHILIPPINES , plaintiff-appellee, vs. MAGDALENA K. LUPOYON,

CLARK CHATONGNA NGAYA, EDMUNDO CHALLIIS SIDCHAYAO, FERNANDO
YACAM-MA CABLOG, ALBERT T. MARAFO, and DANILO RABINA LUCAS, accused-
appellants.

DECISION

GAERLAN, J : p

These are consolidated appeals from the February 26, 2021 Decision 1 of the Sandiganbayan
(SBN) in SB-16-CRM-0323 to 0324, which pronounced Magdalena K. Lupoyon (Lupoyon) and Albert
T. Marafo (Marafo) guilty of two counts graft, as defined and penalized in Section 3 (e) of Republic
Act No. 3019, as amended; and Clark Chatongna Ngaya (Ngaya), Edmundo Challiis Sidchayao
(Sidchayao), Fernando Yacam-ma Cablog (Cablog), and Danilo Rabina Lucas (Lucas) guilty of one
count of the same offense.
Sometime during the 1990s, the broadcasting companies GMA Network, Inc. (GMA) and ABS-
CBN Broadcasting Corporation (ABS-CBN) constructed relay antennae atop Mount Amuyao, within
the jurisdiction of the municipality of Barlig, Mountain Province, 2 with the free and prior informed
consent (FPIC) of the Balangao community who exercise ancestral domain over the area. 3 In
consideration for the grant of FPIC, said companies donated funds to the Barlig Local Government
Unit (LGU) for the construction of certain municipal infrastructure projects. On July 31, 2007, GMA
donated PHP144,760.00 for the construction of a pathway and a view deck in Mount Amuyao using
indigenous materials (Pathway Project); 4 and on January 12, 2009, ABS-CBN donated PHP3 million
for the construction of an open gymnasium (Open Gym Project). 5 Accused-appellant Marafo signed
the instruments of donation on behalf of the Barlig LGU, in his capacity as municipal treasurer. 6
Accused-appellant Lucas also signed the agreement with GMA in his capacity as municipal engineer,
while then-municipal mayor Lupoyon signed the ABS-CBN Deed of Donation as a witness. 7 Both
instruments of donation provided that the donated funds shall be deposited to the LGU's trust fund
account. 8 The municipal treasurer's office issued Official Receipt No. 0051258 on April 3, 2009 for
the GMA donation, while the ABS-CBN donation was covered by Official Receipt No. 0051261
issued on May 7, 2009. 9 The amounts were deposited to the LGU's trust fund account with the Land
Bank of the Philippines (LBP).
The LGU implemented the Open Gym and Pathway Projects without undergoing public
bidding. Lupoyon testified that public bidding was dispensed with to maximize the donated amounts
by avoiding contractor's profit and withholding taxes, and by facilitating the utilization of labor from
Barlig residents, some of whom were willing to work on the projects for free. 10
The Pathway Project was implemented directly by the LGU in June 2009. Laborers from the
Balangao ancestral domain conducted the clearing and construction operations. 11 They were
supervised by Ophelia Witawit (Witawit), a village elder and Lupong Tagapamayapa member from
Barangay Latang, Barlig; and were paid directly by Marafo after being issued community tax
certificates. 12 Witawit averred that the laborers for the Pathway Project were paid a total amount of
PHP50,000.00. 13 She also submitted attendance log sheets containing the names of the laborers
and the amounts paid to each. 14 Accused-appellants Cablog and Ngaya witnessed the payment of
the wages to the laborers. 15 Records show that a total of PHP55,063.50 was disbursed for the
pathway project, of which PHP55,000.00 was actually spent. 16
On May 22, 2009, the Barlig municipal council authorized Marafo and Lupoyon to transfer the
ABS-CBN donation to the LGU's account with the Philippine National Bank (PNB), and to withdraw
from said account the amounts needed for the Open Gym Project. 17 Marafo thus transferred a total
of PHP3,324,890.00 representing the full amount of the ABS-CBN donation and part of the GMA
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 donation to the LGU's PNB account. 18 He also cancelled the official receipts upon Lupoyon's
instruction. 19 According to Marafo, Lupoyon justified the transfer on the ground that the funds are
outside state audit jurisdiction because they were donated by private entities. 20
The LGU directly implemented the Open Gym Project from June to December 2009. The
Program of Works 21 was drawn up by a certain Rogelio Abalos, a foreman assigned to the Barlig
municipal engineer's office. Lucas, as municipal engineer, evaluated, verified, and submitted to
Lupoyon the prepared Program of Works. 22 As in the Pathway Project, the LGU utilized labor from
local residents. 23 Construction materials and other supplies were sourced directly by the LGU from
various sources. 24 To defray these expenses, Lupoyon and Marafo withdrew from the donated
funds that had been transferred to LGU's PNB account. 25 They disbursed a total of PHP2.5 million
from the ABS-CBN fund without undergoing procurement processes. 26 Some of the disbursements
were made or witnessed by Sidchayao, Cablog, and Ngaya, who were members of the municipal
council at that time. 27 Ngaya also executed a Certification wherein he assumed responsibility for
any disallowance of the amounts paid to his brother, Warren Ngaya, who received PHP71,100.00 for
"hauling of construction materials." 28 The Open Gym was completed on December 23, 2009. 29
In the course of a routine cash audit, state auditors discovered the withdrawal of the donated
amounts from the LGU trust fund and the subsequent implementation of the Open Gym and Pathway
Projects without public bidding. 30 On July 5, 2009, State Auditor III Esther F. Daoas 31 (SA Daoas) of
the Commission on Audit (COA)-Mountain Province Office issued Audit Observation Memorandum
(AOM) No. 09-003 stating that the ABS-CBN donation was not recorded in the LGU's trust fund
account, and that the transfer of the donated funds from the LGU's LBP trust fund account to its PNB
account appears to have been a deliberate attempt to bring the funds out of state audit jurisdiction.
SA Daoas thus directed Lupoyon to: 1) cause the transfer of the donated funds back to the LGU's
LBP trust fund account; 2) submit all documents pertaining to the donated funds for post-audit; and
3) explain the transfer of the funds to the PNB account and the cancellation of the original official
receipts. In her reply dated July 14, 2009, Lupoyon explained that "the disbursement of expenses for
the open gym will not follow the government procedures" to avoid payment of the 10% contractor's
profit and the long process of government bidding, and to access the labor of the concerned
residents. 32 Lupoyon further admitted that the original receipts were cancelled and replaced by
acknowledgment receipts; and maintained that "[t]he accounting and auditing of expenses will be
done by the Municipal Officials to the residents of Barlig when the projects will be completed." 33
After a further exchange of correspondence and documents between the LGU and the state
auditors, the COA issued a Notice of Suspension for the 2.5 million pesos disbursed for the Open
Gym Project. 34 The COA also disallowed the following amounts: 1) PHP10,889.66 for electricity
supply fees and payments to a hauler for the Open Gym Project, for failure to pay taxes, failure to
issue an official receipt, and erroneous payment; 35 2) PHP22,275.00 paid to four persons who
allegedly worked in the Open Gym Project, for apparently having been issued after the completion of
said project; 36 and 3) PHP50,000.00 for the wages of the laborers for the Pathway Project, for failure
to submit the Program of Work, Accomplishment Report and Inspection Report. 37 The Notice of
Suspension identified the following responsible officers and their participation: 38

Name Position/Designation Nature of Participation in the

Transaction

Magdalena K. Former Municipal Mayor Approving official in the project

Lupoyon implementation

Albert T. Marafo Former Municipal Treasurer Municipal officer who made

withdrawals for the payment of
transactions

Edmundo C. Former Municipal Vice-Mayor and now Elective official who participated in
Sidchayao elected Mayor the procurement activities

Fernando Y. Cablog S[angguniang] B[ayan] Member Elective official who participated in

the procurement activities
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 Clark C. Ngaya S[angguniang] B[ayan] Member Elective official who participated in
the procurement activities

Danilo R. Lucas Municipal Engineer For not preparing the SWA, Plans
and Change Orders

On November 10, 2010, former councilor Jeb Constancio (Constancio), Ayson Naulgan
(Naulgan), 39 and Albert Kiwan filed a complaint against accused-appellant/s and other Barlig LGU
officials before the Office of the Ombudsman (OMB), praying for the "conduct [of] an investigation on
the basis of the factual and material allegations herein and [for the] institut[ion of] the appropriate
criminal and administrative cases" against said officials, for implementing the Pathway and Open
Gym Projects without public bidding, despite the issuance of the Notice of Suspension. 40
The Notice of Suspension previously issued against the PHP50,000.00 spent for the Pathway
Project ripened into a Notice of Disallowance issued on August 18, 2017, after the Barlig LGU failed
to submit the required payroll, work program, accomplishment report, and inspection report on work
done. 41
On August 10, 2015, the OMB found probable cause to charge accused-appellant/s with
violation of Section 3 (e) of Republic Act No. 3019. 42 On March 21, 2016, accused-appellant/s were
formally charged under the following Informations:
In SB-16-CRM-0323:
The undersigned Assistant Special Prosecutor I of the Office of the Special Prosecutor, Office
of the Ombudsman, accuses MAGDALENA K. LUPOYON and ALBERT TENGLAB MARAFO
of the crime for Violation of Section 3 (e) of Republic Act No. 3019 (Anti-Graft and Corrupt
Practices Act), as amended, committed as follows:
That on 26 June 2009 or sometime prior or subsequent thereto, in the Municipality of Barlig,
Mountain Province, Philippines, and within the jurisdiction of this Honorable Court; the above
named accused, MAGDALENA K. LUPOYON, a high ranking public officer with salary grade
27, being then the Municipal Mayor and ALBERT TENGLAB MARAFO, then Municipal
Treasurer, both of the Municipality of Barlig, Mountain Province; while in the performance of
their official and/or administrative functions; conspiring with one another, committing the
offense in relation to their office, acting with evident bad faith or gross inexcusable
negligence; did then and there willfully, unlawfully and criminally cause undue injury to the
Municipality of Barlig, Mountain Province by causing the repair or renovation of the pathway
leading to Mount Amuyao in the amount of Fifty Thousand Pesos (Php50,000.00), without
public bidding as required under Section 10 of Republic Act No. 9184, otherwise known as
the Government Procurement Reform Act and its implementing rules and regulations, to the
damage and prejudice of the government in the aforestated amount.
CONTRARY TO LAW. 43
In SB-16-CRM-0324:
The undersigned Assistant Special Prosecutor I of the Office of the Special Prosecutor, Office
of the Ombudsman, accuses MAGDALENA K. LUPOYON, EDMUNDO CHALLIIS
SIDCHAYAO, CLARK CHATONGNA NGAYA, FERNANDO YACAM-MA CABLOG, ALBERT
TENGLAB MARAFO and DANILO RABINA LUCAS of the crime of Violation of Section 3 (e)
of Republic Act No. 3019 (Anti-Graft and Corrupt Practices Act), as amended, committed as
follows:
That on 23 December 2009 or sometime prior or subsequent thereto, in the Municipality of
Barlig, Mountain Province, Philippines, and within the jurisdiction of this Honorable Court; the
above named accused, MAGDALENA K. LUPOYON, a high ranking public officer with salary
grade 27, being then the Municipal Mayor, EDMUNDO C. SIDCHAYAO, then Municipal Vice-
Mayor, CLARK CHATONGNA NGAYA and FERNANDO YACAM-MA CABLOG, both then
Sangguniang Bayan Member, ALBERT TENGLAB MARAFO, then Municipal Treasurer and
DANILO RABINA LUCAS, Municipal Engineer, all of the Municipality of Barlig, Mountain
Province; while in the performance of their official and/or administrative functions; conspiring
with one another, committing the offense in relation to their office, acting with evident bad
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 faith or gross inexcusable negligence; did then and there willfully, unlawfully and criminally
cause undue injury to the Municipality of Barlig, Mountain Province by causing the
construction of the open gymnasium in the amount of Two Million Five Hundred Thousand
Pesos (Php2,500,000.00), without public bidding as required under Section 10 of Republic
Act No. 9184, otherwise known as the Government Procurement Reform Act and its
implementing rules and regulations, to the damage and prejudice of the government in the
aforestated amount.
CONTRARY TO LAW. 44
The prosecution presented Constancio, Naulgan, 45 and the COA officers who audited the
Open Gym and Pathway Projects. The state auditors produced and identified the audit reports, audit
documents, and the supporting documents submitted by the Barlig LGU. On the whole, the
prosecution tried to show that accused-appellant/s deliberately brought the donated funds out of
state audit jurisdiction and directly disbursed said funds to implement the Open Gym and Pathway
Projects without public bidding. For these reasons, the COA either suspended or disallowed almost
PHP2,550,000.00 in disbursements related to the Open Gym and Pathway Projects. 46
Lupoyon, Sidchayao, Ngaya, Cablog, and Lucas took the witness stand in their own defense.
Marafo adopted their testimonies as his own.
Lupoyon maintained that the decision to forego public bidding was arrived at by consensus
among the concerned municipal officials, after Lucas had submitted an estimate of the contractor's
profit that the municipality would have been required to pay under prevailing procurement guidelines.
She also admitted that only PHP500,000.00 of the total amount spent on the projects underwent
public bidding, after the COA had issued a notice of suspension for the previously-spent funds.
Lupoyon also agreed that the donated funds should have been placed in the LGU's trust fund
account. However, Lupoyon maintained that the LGU was able to submit all the documents required
by the COA, and that the people of Barlig were able to benefit from the already-completed Open
Gym. 47
Sidchayao admitted that he witnessed and signed for certain deliveries of materials directly
procured by the LGU for the Open Gym Project; however, he claimed that he learned of the decision
to dispense with public bidding only after construction of the Open Gym had already begun. The
Open Gym was finished before the end of Lupoyon's term as Mayor, and he signed the certificate of
acceptance of the finished project. As Lupoyon's successor, he received most of the Notices of
Suspension issued by the COA and accordingly submitted the documents requested. He maintained
that the implementation of the Open Gym project without public bidding did not cause any injury to
the LGU, and the residents of Barlig are already enjoying and using said gymnasium. 48
Like Sidchayao, Cablog claimed that he only learned of the decision to forgo public bidding
after the Open Gym project had begun. He also admitted to witnessing and signing for certain
deliveries of materials for the Open Gym project. 49
Ngaya testified that he was elected mayor of Barlig in 2013. He also disclaimed any
participation in the decision to forego public bidding, claiming that merely went along with the
implementation of the Open Gym project. He admitted to signing the final acceptance and inspection
report. He also admitted to personally disbursing payments to certain suppliers for the Open Gym
project. Finally, he admitted that his brother, Warren Ngaya, was one of the persons hired by the
LGU to haul materials for the construction of the Open Gym. 50
Lucas testified that he was the municipal engineer of Barlig at the time of the events pertinent
to the case. As such, he has the duty to administer, coordinate, supervise and control the LGU's
public works projects. He was initially directed by Lupoyon to draft a work program for the Open Gym
at a cost of PHP10 million. Lupoyon then asked him to draft a revised program at a cost of PHP3
million. The project proceeded without public bidding despite his contrary advice to Lupoyon. When
asked by the COA to explain why two programs of work were submitted without engineering
specifications or drawings, Lucas claimed that the plans and specifications may not have reached
the concerned auditor's office. Following the suspension of the PHP2.5 million previously spent for
the Open Gym project, he prepared a work program for the final amount of PHP500,000.00 that was
disbursed through public bidding. He also failed to submit the Statement of Work Accomplished
required by COA because his office did not supervise the project of implementation due to lack of
bidding. On cross-examination, Lucas claimed that the work program was prepared by a certain
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 Rogelio Abalos, who was Ngaya's brother-in-law and a Barlig LGU employee assigned to the Office
of the Municipal Engineer. Nevertheless, Lucas checked and verified the program of works before
submitting it to Lupoyon. 51
The SBN found Lupoyon and Marafo guilty of two counts of violation of Section 3 (e) of
Republic Act No. 3019, for their participation in the Pathway and the Open Gym Projects, while
Sidchayao, Ngaya, Cablog, and Lucas were found guilty of the same offense for their participation in
the Open Gym Project.
In SB-16-CRM-0323, Lupoyon and Marafo's implementation of the Pathway Project without
public bidding caused undue injury to the government as the LGU lost the opportunity to implement
the project at a most advantageous and beneficial cost. Lupoyon and Marafo failed to sufficiently
justify the decision to dispense with public bidding. Manifest partiality, evident bad faith, and gross
inexcusable negligence were manifested by the following: 1) Lupoyon and Marafo deliberately
moved the GMA funds out of the LGU trust fund account, in violation of Sections 305 (d) and 309 (a)
of the Local Government Code (LGC); 2) Lupoyon personally appointed the laborers for the Pathway
Project; 3) Marafo personally paid the wages and expenses of said laborers; and 4) none of the
payments in connection with the project were covered by disbursement vouchers. 52
In SB-16-CRM-0324, accused-appellant/s implemented the Open Gym Project without public
bidding, causing undue injury to the government by preventing the implementation of said Project at
a most advantageous and beneficial cost to the LGU. 53 Since there was no public bidding, all
payments made by the LGU for the Open Gym project can be considered unwarranted benefits, as
the suppliers and other participants in the project were either selected or paid by the accused-
appellant/s. The SBN cited the following questionable payments: 1) PHP370,000.00 paid to Lorenzo
Backian for labor costs, without any statement of work accomplished, and without proof that said
payment was more economical than "programming of labor cost for building construction" ; 2)
PHP71,100.00 paid to Warren Ngaya for hauling construction materials, without a list of materials
hauled; 3) PHP69,800.00 worth of undelivered angle bars; 4) unreceipted electricity payments to the
Mountain Province Electric Cooperative; and 5) payments to workers made after the date of final
inspection and acceptance of the Open Gym. 54
Manifest partiality, evident bad faith, and gross inexcusable negligence were evinced by the
following circumstances: 1) accused-appellants Cablog, Sidchayao, and Ngaya violated the Deed of
Donation with ABS-CBN when they voted to authorize Lupoyon and Marafo to move the ABS-CBN
donation out of the LGU's trust fund account; 2) accused-appellants Lupoyon and Marafo violated
the Deed of Donation with ABS-CBN when they actually moved the ABS-CBN donation out of the
LGU's trust fund account, pursuant to the Sangguniang Bayan authorization; 3) accused-appellant/s
admitted that the decision to move the donated funds out of the trust fund account was made by the
Sangguniang Bayan at the instance of Lupoyon and Marafo; 55 4) accused-appellant/s again violated
the Deed of Donation with ABS-CBN when they implemented the Open Gym project without public
bidding; 5) Lupoyon openly and formally admitted to state auditors that the Open Gym project did not
undergo public bidding; and 6) Lupoyon also admitted to state auditors that the LGU started
purchasing materials for the projects even before the completion of the work program. 56
As in SB-16-CRM-0323, the SBN found Lupoyon's justification for skipping public bidding
untenable, because the alleged computation of the 10% contractor's profit by Lucas was not shown,
and Lucas himself recommended that the project be bid out. At any rate, the LGU cannot totally
avoid paying a profit to any contractor or supplier, because no supplier or contractor would be willing
to provide goods or services without profit; and the rules on government procurement do not
preclude the utilization of free labor in public works project.
The SBN also found that accused-appellant/s acted in conspiracy. After receiving the ABS-
CBN donation, Marafo cancelled the original receipt and omitted the amount from the trust fund
books. The Sangguniang Bayan — Ngaya, Cablog, and Sidchayao included — then authorized
Lupoyon and Marafo to move the donated funds from the LBP trust fund account to the PNB
account, and to withdraw from said donated funds. Lupoyon signed the purchase requests as
requesting and approving officer, while Ngaya and Sidchayao signed the Inspection and Acceptance
Report for the Open Gym project even if they were not members of the LGU's Inspection and
Acceptance Committee. Sidchayao admitted to witnessing and receiving certain deliveries of
construction materials, while Ngaya and Cablog admitting making certain payments to suppliers
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 even if they were not duly authorized disbursing officers. Ngaya even executed a deed holding
himself personally responsible for the payments made to his brother. Finally, Lucas prepared a
deficient work program, declined to supervise the construction of the Open Gym, and consequently
failed to produce the necessary progress reports. Taken together, these acts indicate accused-
appellant/s' common purpose of taking the donated funds out of state audit jurisdiction and
implementing the Open Gym and Pathway projects without public bidding. 57 The SBN disposed of
the case thusly:
WHEREFORE, in light of all the foregoing, judgment is hereby rendered as follows:
1. In SB-16-CRM-0323, accused Magdalena K. Lupoyon and Albert T. Marafo are found
GUILTY beyond reasonable doubt of violation of Section 3 (e) of [Republic Act] No. 3019, as
amended, and are each hereby sentenced to suffer an indeterminate penalty of imprisonment
of six (6) years and one (1) month, as minimum, to eight (8) years, as maximum; and to suffer
perpetual disqualification to hold public office; and
2. In SB-16-CRM-0324, accused Magdalena K. Lupoyon, Albert T. Marafo, Edmundo
Challiis Sidchayao, Clark Chatongna Ngaya, Fernando Yacam-ma Cablog and Danilo Rabina
Lucas are found GUILTY beyond reasonable doubt of violation of Section 3 (e) of [Republic
Act] No. 3019, and are sentenced to suffer an indeterminate penalty of imprisonment of six
(6) years and one (1) month, as minimum, to eight (8) years, as maximum; and to suffer
perpetual disqualification to hold public office.
SO ORDERED. 58 (Emphasis in the original)
Associate Justice Maria Theresa V. Mendoza-Arcega (Justice Mendoza-Arcega) voted to
acquit Lucas, arguing that his refusal to supervise the Open Gym Project and his consequent failure
to produce the necessary progress reports indicate his refusal to participate in the implementation of
a project that did not undergo public bidding. 59
Presiding Justice Amparo M. Cabotaje-Tang (Justice Cabotaje-Tang) voted to acquit the
accused-appellant/s, arguing that the State failed to establish the undue injury or unwarranted
benefits resulting from the implementation of the questioned projects without public bidding. Mere
non-conduct of public bidding, by itself, does not prove undue injury to the government. The
prosecution must still establish actual loss through proof that the project could have been
implemented at a lower cost had it been bid out. Also, undue injury is negated by the fact that both
projects were completed within Lupoyon's term despite noncompliance with government
procurement rules. 60
The suspensions and disallowances issued by the COA cannot be taken as proof of undue
injury because they were based either on the Barlig LGU's failure to submit the required documents
or the lack of public bidding per se. A suspension or disallowance does not necessarily render an
expenditure illegal, because the COA has the power to suspend or disallow expenditures for other
reasons. More importantly, the prosecution's case was centered around the lack of public bidding. No
evidence was submitted to prove that accused-appellant/s actually misused the funds that were
disbursed for the questioned projects. Even assuming that the disbursed funds were not properly
accounted for, this oversight alone cannot support a conviction for violation of Section 3 (e), which
requires proof of actual loss to the government. 61
Accused-appellant/s cannot be convicted of violating Section 3 (e) through granting
unwarranted benefits because this was not alleged in the Informations and the prosecution did not
present any evidence on this point, as the prosecution witnesses' testimonies "centered on the
failure of the a[ppellants] to follow the rules on procurement and the non-submission of documents
relative to the projects undertaken." 62
Their motion for reconsideration having been denied, 63 accused-appellant/s now accuse the
SBN of the following errors: 1) finding accused-appellant/s guilty of violating Section 3 (e) through
manifest partiality, evident bad faith and gross inexcusable negligence, when manifest partiality was
not alleged in the Informations and evident bad faith and gross inexcusable negligence were not duly
proven; 64 2) finding undue injury solely on the basis of the lack of public bidding, despite the
prosecution's failure to prove actual loss or damage; 65 3) finding accused-appellant/s guilty of
violating Section 3 (e) through the act of granting unwarranted benefits, when this was not alleged in
the Informations; 66 and 4) finding that accused-appellant/s conspired to implement the questioned
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 projects without public bidding despite evidence of the limited participation of Sidchayao, Ngaya,
Cablog, and Lucas therein. 67 Lupoyon further argues that the SBN failed to consider the fact that the
audit of the questioned projects was still underway when the Informations were filed, and remained
pending even during the trial phase, when the state auditors testified. Moreover, the COA ultimately
lifted the suspension of the amounts disbursed for the Open Gym project after finding that the whole
ABS-CBN donation was actually spent thereon. 68
The Special Prosecutor urges Us to affirm the SBN. It argues that all the elements of the
offense defined in Section 3 (e) are present. As to the second element, Lupoyon openly admitted that
it was the joint decision of the Mayor and Sangguniang Bayan to take the donated funds out of the
LGU trust fund account and to implement the questioned projects without public bidding. Lucas,
Marafo, Sidchayao, Ngaya and Cablog then implemented this consensus by actually moving the
donated funds out of the LGU's trust fund and then participating in the implementation of said
projects despite the lack of bidding. 69
We find for accused-appellant/s.
Currently, no court or tribunal has intermediate review powers over the SBN's exercise of its
original jurisdiction. Original-jurisdiction adjudications by the SBN may be elevated only to the
Supreme Court through appeal or petition for review. Mindful of the de novo character of an appeal
and the constitutional presumption of innocence, We laid down the following policy in deciding such
resources:
Thus, with respect to cases resolved by the [SBN] in the exercise of its original jurisdiction,
the mode of deciding the case is either through a decision or unsigned resolution. The reason
behind this policy is because this Court is the first and last court which has the chance to
review the factual findings and legal conclusions of the [SBN]. Thus, by disposing of the case
through a decision or unsigned resolution, this Court is required to take a "more than casual
consideration" of the arguments raised by the appellant to support his cause as well as every
circumstance which might prove his innocence. Moreover, by virtue of the unique nature of an
appeal in a criminal case, such appeal throws the whole case open for review in all its
aspects. An examination of the entire records of the case may be made for the purpose of
arriving at a correct conclusion. In doing so, the Court is always mindful of the precept that
the evidence for the prosecution must stand or fall on its own weight and cannot be allowed
to draw strength from the weakness of the defense. 70
We have accordingly scrutinized the records of the present case and found the appeals
meritorious.
The offense defined in Section 3 (e) of Republic Act No. 3019 has three elements: 1) the
accused-appellant/s must be a public officer; 2) the accused-appellant/s caused undue injury to any
party, including the Government, or gave any private party unwarranted benefits, advantage or
preference in the discharge of his official administrative or judicial functions; and 3) the injury to any
party, or giving any private party any unwarranted benefits, advantage or preference was done
through manifest partiality, evident bad faith or gross inexcusable negligence. 71 Accused-appellant/s
fault the SB for detecting the presence of the second and third elements.
Causing undue injury and granting
unwarranted benefits are separate acts;
accused-appellant/s cannot be convicted of
one or the other if not alleged in the
Information
"[A]n accused can only be convicted of the crime with which he or she is charged. This rule
proceeds from the constitutional guarantee that an accused shall always be informed of the nature
and cause of the accusation against him or her." 72
Section 3 (e) of Republic Act No. 3019 is a multimodal offense, in that its second element
contemplates two distinct acts 73 and its third element lists three distinct modes of committing such
acts. 74 Thus, there are at least six (2*3) distinct ways of committing the offense. 75 For this reason,
case law requires that the manner in which Section 3 (e) was violated must be clearly stated in the
Information:
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 Needless to say, there are a number of ways by which Section 3(e) of R.A. No. 3019 may be
violated. But, recognizing an accused's constitutional right to due process, conviction may
only be obtained under what has been charged, or included, in the complaint or information. It
is of no consequence that the designation of the offense given by the statute has been
specified and the facts proven fall under said designation. The real nature of the crime
charged is determined not by the title of the complaint, nor by the specification of the
provision of the law alleged to have been violated, but on the facts recited in the complaint or
information. More particularly, the prosecution must show that the act alleged, in the manner
stated in the information, has been committed by the accused, regardless of the technical
name of the crime charged. 76
Causing undue injury and granting unwarranted benefits are two distinct and separate acts 77
which Republic Act No. 3019 subsumes under a single offense. Undue injury as contemplated in
Section 3 (e) means actual loss to the government or any party; 78 while unwarranted benefits are
those granted to private persons without adequate or official support, justification, or authority. 79
As explained in Bautista v. Sandiganbayan:
Indeed, Sec. 3, par. (e), [Republic Act No.] 3019, as amended, provides as one of its
elements that the public officer should have acted by causing any undue injury to any party,
including the government, or by giving any private party unwarranted benefits, advantage or
preference in the discharge of his functions. The use of the disjunctive term "or" connotes that
either act qualifies as a violation of Sec. 3, par. (e), or as aptly held in Santiago, as two (2)
different modes of committing the offense. This does not however indicate that each mode
constitutes a distinct offense, but rather, that an accused may be charged under either mode
or under both.
In Santiago petitioner therein assailed the failure of respondent to include the phrase "causing
of undue injury to any party, including the Government" in the amended informations filed
against her. Refuting the claim, the Court cited the minute resolution in Uy v. Sandiganbayan
and clarified that the "act of giving any private party any unwarranted benefit,
advantage or preference" is not an indispensable element of the offense of "causing
any undue injury to any party," although there maybe instances where both elements
concur. Thus, in Pareño v. Sandiganbayan the information charged the public officers with
"willfully and unlawfully causing undue injury to the Government and giving unwarranted
benefits to Tanduay Distillery, Inc." by failing to verify and act on the validity and/or veracity of
the claim for tax credit filed by the corporation before the BIR. 80
Thus, Cabrera v. Sandiganbayan instructs that an information for violation of Section 3 (e)
must charge either or both punishable acts:
There are two (2) ways by which a public official violates Section 3(e) of Rep. Act No. 3019 in
the performance of his functions, namely: (a) by causing undue injury to any party, including
the Government; or (b) by giving any private party any unwarranted benefit, advantage or
preference. The accused may be charged under either mode or under both. In Quibal v.
Sandiganbayan, the Court held that the use of the disjunctive term "or" connotes that either
act qualifies as a violation of Sec. 3(e) of Rep. Act No. 3019. In fine, the delictual act of the
accused may give rise to or cause either an undue injury to any party, including the
government; or the giving to any private party unwarranted benefits, advantage or preference,
or both undue injury and warranted benefits, advantage or preference. 81
Here, accused-appellant/s are charged with "caus[ing] undue injury to the Municipality of
Barlig, Mountain Province by causing the" implementation of the Open Gym and Pathway projects. 82
Clearly, accused-appellant/s are being charged solely for the act of causing undue injury, to the
exclusion of granting unwarranted benefits. As discussed above, causing undue injury and granting
unwarranted benefits are distinct and separate acts which necessitate different defenses and forms
of proof. Thus, both acts must be alleged in the information in order to convict the accused-
appellant/s under both acts; and the accused-appellant/s cannot be convicted on the basis of either
act if not alleged in the information. In Villarosa v. People:
[I]t would be highly improper, nay unconstitutional, to convict petitioner on the basis of gross
inexcusable negligence. It must be emphasized that the Informations filed against petitioner
all accuse the latter of violating Section 3 (e) of [Republic Act No.] 3019 through the modality
of evident bad faith only. Not one Information accused petitioner of violating the same
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 provision through gross inexcusable negligence. As can be derived from our earlier
discussions, evident bad faith and gross inexcusable negligence are two of the three
modalities of committing violations of Section 3 (e) of [Republic Act No.] 3019. Also, by our
previous discussion, we were able to establish that each modality of violating Section 3 (e) of
[Republic Act No.] 3019 is actually distinct from the others. Hence, while all three modalities
may be alleged simultaneously in a single information for violation of Section 3 (e) of
[Republic Act No.] 3019, an allegation of only one modality without mention of the others
necessarily means the exclusion of those not mentioned. Verily, an accusation for a violation
of Section 3 (e) of [Republic Act No.] 3019 committed through evident bad faith only, cannot
be considered as synonymous to, or includes an accusation of violation of Section 3 (e) of
[Republic Act No.] 3019 committed through gross inexcusable negligence.
To adopt the dissent's view, therefore, would inevitably sanction a violation of petitioner's due
process rights, particularly of his right to be informed of the nature and cause of the
accusation against him. Convicting petitioner of violation of Section 3 (e) of [Republic Act No.]
3019 on the basis of gross inexcusable negligence, when he was but charged of committing
the violation by means of evident bad faith only, would be highly unfair as it effectively
deprives the petitioner of the opportunity to defend himself against a novel accusation. This
outcome simply cannot be countenanced. 83 (Citations omitted)
While Villarosa involved the defective allegation of the particular modes of violating Section 3
(e), i.e., the third element, its underlying principle also applies to the allegation of the acts constitutive
of said offense (the second element), because the causing of undue injury and the granting of
unwarranted benefits are two distinct and separate acts. As correctly pointed out in Justice
Cabotaje-Tang's dissent, accused-appellant/s cannot be convicted for an act which they were not
properly accused-appellant/s of committing, and which the prosecution did not even try to prove:
In this case, however, the two (2) Informations specifically charge the accused only under the
first punishable act. To find them guilty under the second punishable act would be highly
improper as that would unduly impinge on their constitutional right to be informed of the
nature and cause of accusation against them.
xxx xxx xxx
Moreover, the prosecution did not present any evidence as to this second modality, i.e.,
giving unwarranted benefit, advantage or preference in favor of private persons. There is
absolutely want of any allegation/evidence on the specific person/s to whom the accused
gave unwarranted benefits, advantage, or preference and how they did so. In fact, the
prosecution's evidence focused on the failure of the accused to observe the proper
procedures in the procurement of the construction of the gymnasium and the pathway.
A review of the records of these cases will show that majority of the prosecution witnesses
were from the Commission on Audit (COA). Notably, their testimonies centered on the failure
of the accused to follow the rules on procurement and the non-submission of documents
relative to the projects undertaken. The only witnesses they presented, who were not from
the COA, were the private complainants whose testimonies also revolved around the fact that
there was no public bidding, and not on the fact that the donations were misused or lost. 84
Thus, accused-appellant/s cannot be convicted on the basis of granting unwarranted benefits,
and the SBN erred in doing so.
Undue injury not proven beyond reasonable
doubt
Renales v. People explains the concept of undue injury as contemplated in Section 3 (e) of
Republic Act No. 3019:
In jurisprudence, "undue injury" is consistently interpreted as "actual damage." Undue has
been defined as "more than necessary, not proper, [or] illegal" and injury as "any wrong or
damaged one to another, either in his person, rights, reputation or property [that is, the]
invasion of any legally protected interest of another." Actual damage, in the context of these
definitions, is akin to that in civil law.
In turn, actual or compensatory damages is defined by Article 2199 of the Civil Code as
follows:

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 Art. 2199. Except as provided by law or by stipulation, one is entitled to an adequate
compensation only for such pecuniary loss suffered by him as he has duly proved. Such
compensation is referred to as actual or compensatory damages.
Fundamental in the law on damages is that one injured by a breach of a contract, or by a
wrongful or negligent act or omission shall have a fair and just compensation commensurate
to the loss sustained as a consequence of the defendant's act. Actual pecuniary
compensation is awarded as a general rule except where the circumstances warrant the
allowance of other kinds of damages. Actual damages are primarily intended to simply make
good or replace the loss caused by the wrong.
Furthermore, damages must not only be capable of proof, but must be actually proven with a
reasonable degree of certainty. They cannot be based on flimsy and non-substantial evidence
or upon speculation, conjecture, or guesswork. They cannot include speculative damages
which are too remote to be included in an accurate estimate of the loss or injury.
The same principle was reiterated in Rivera v. People, thus:
. . . [U]ndue injury should be equated with that civil law concept of "actual damage." Unlike in
actions for torts, undue injury in Sec. 3(e) cannot be presumed even after a wrong or a
violation of a right has been established. Its existence must be proven as one of the elements
of the crime. In fact, the causing of undue injury, or the giving of any unwarranted benefits,
advantage or preference through manifest partiality, evident bad faith or gross inexcusable
negligence constitutes the very act punished under this section. Thus, it is required that the
undue injury be specified, quantified, and proven to the point of moral certainty.
I n Abubakar v. People of the Philippines, this Court held that an accused is said to have
caused undue injury to the government or any party when the latter sustains actual loss or
damage, which must exist as a fact and cannot be based on speculations or conjectures. The
loss or damage need not be proven with actual certainty. However, there must be "some
reasonable basis by which the court can measure it." Aside from this, the loss or damage
must be substantial. It must be "more than necessary, excessive, improper or illegal."
In other words, jurisprudence requires that for a successful prosecution of violation of Section
3(e) of [Republic Act No.] 3019, the fact of undue injury to the government must be specified,
quantified, and proven beyond reasonable doubt. 85
In convicting accused-appellant/s, the SBN ruled that they unduly injured the government by
implementing the questioned projects without public bidding, thereby foregoing the opportunity to
build the Open Gym and the Mount Amuyao pathway at a cost most advantageous and beneficial to
the government. However, the prosecution did not identify or even provide an estimate of such most
advantageous and beneficial cost. There is nothing in the voluminous case records to show that the
questioned projects would have been implemented at a lower cost had the Barlig LGU gone through
regular procurement processes. The SBN deduced the existence of undue injury solely from the lack
of public bidding. This does not satisfy the statutory requirement of actual loss, as actual loss does
not necessarily follow from noncompliance with government procurement regulations. In Sabaldan v.
Office of the Ombudsman: 86
More importantly, it must be emphasized that the instant case involves a finding of probable
cause for a criminal case for violation of Section 3(e) of [Republic Act] No. 3019, and not for
violation of [Republic Act] No. 9184. Hence, even granting that there may be violations of the
applicable procurement laws, the same does not mean that the elements of violation of
Section 3(e) of [Republic Act] No. 3019 are already present as a matter of course. For there
to be a violation under Section 3(e) of [Republic Act] No. 3019 based on a breach of
applicable procurement laws, one cannot solely rely on the mere fact that a violation of
procurement laws has been committed. It must be shown that (1) the violation of procurement
laws caused undue injury to any party or gave any private party unwarranted benefits,
advantage or preference; and (2) the accused acted with evident bad faith, manifest partiality,
or gross inexcusable negligence. 87
I n Renales, officials of the Philippine Navy were charged with causing undue injury and
granting unwarranted benefits by making unjustified emergency purchases of medicines without
public bidding. The SBN found that the unjustified emergency purchases constituted undue injury
under Section 3 (e) since they were made without public bidding. We reversed the SBN thus:
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 In this case, it can be observed that the prosecution failed to prove any undue injury suffered
by the Government because of the emergency purchase of the medicines from the five
suppliers. The Sandiganbayan itself even acknowledged that the prosecution failed to prove
the fact of overpricing in the medicines purchased by the accused. To be able to show that
indeed the government suffered damage, the prosecution should have canvassed and should
have compared the prices of the branded medicines purchased by the accused to the exact
brands sold by other suppliers. The difference of the prices, if any, would prove the presence
of undue injury to the government. However, this was not done. Hence, there is no actual
basis for Sandiganbayan to conclude that the government suffered undue injury because of
the emergency purchase of the subject medicines. 88
Similarly, the State's failure to identify or provide an estimate of the bid-compliant cost for the
Open Gym and Pathway projects engenders serious doubt in the existence of undue injury to the
government. Without such reference price, there is no way to determine whether the Barlig LGU
could have spent less money on the questioned projects had they been bid out. Furthermore, the
records show that both projects were completed using the donated funds, and the prosecution did
not submit any proof that the Barlig LGU used any other funding source to finance the construction of
the Open Gym. The same is true for the Pathway Project, which was completed at a cost of
PHP55,000.00, taken wholly from the GMA fund.
The prosecution also failed to submit adequate proof of undue injury stemming from the
irregularities flagged by the COA. As correctly pointed out in Justice Cabotaje-Tang's dissenting
opinion, 89 an audit disallowance can be based not only on the illegality or the irregularity of an
expenditure, but also upon its lack of necessity, excessiveness, extravagance, or unconscionability.
90 Thus, an audit suspension or disallowance does not automatically indicate pecuniary loss to the
government or any other party. Here, the COA disallowed PHP50,000.00 in disbursements for the
Pathway Project due to non-submission of the Program of Work, Accomplishment Report and
Inspection Report. 91 However, the affidavit of the project supervisor Ophelia Witawit and its included
attachments clearly shows that the Pathway Project was implemented directly by the communities
residing around Mount Amuyao, 92 in accordance with the terms of the GMA Deed of Donation, which
provided that the pathway to Mount Amuyao shall be constructed using indigenous materials. 93 The
participation of the Barlig LGU in the project was limited to the disbursement of the donated funds for
the compensation of the residents' labor and the purchase of materials used for the project. These
disbursements were supported by documentation and receipts which were nevertheless rejected by
the COA for not being in line with government procurement regulations. As regards the Open Gym
Project, the COA-Mountain Province itself admitted "that the previous Audit Team Leaders assigned
to the [Barlig LGU] opted not to issue notice of disallowance pursuant to Section 9, Chapter III of the
2009 Rules and Regulation[s] on the settlement of accounts because the nature of suspension does
not involve pecuniary loss to the government since [the] suspensions involved the submission of
documents of which some have been complied with. " 94 This is corroborated by the Inspection
Report dated July 30, 2010 by the COA Cordillera regional office, which essentially stated that the
Open Gym Project has been completed on the basis of the plans and documents submitted by the
Barlig LGU but the complete verification of such completion cannot proceed because of missing
documents. 95
Likewise, the COA reports and the testimonies of the state auditors do not show how the
Barlig LGU or any other party was unduly injured by the transfer of the donated amounts away from
the LGU's trust fund account, considering that the Open Gym and Pathway Projects were completed
within accused-appellant/s' tenure in office, using the funds donated for the purpose; and any excess
from the GMA and ABS-CBN donations remained in the LGU's account. 96
Evident bad faith and gross inexcusable
negligence not proven
Accused-appellant/s were charged with violating Section 3 (e) by causing undue injury with
evident bad faith and gross inexcusable negligence, with the modality of manifest partiality having
been omitted. Still following Villarosa, the SB erred in finding accused-appellant/s guilty of manifest
partiality, as this was not alleged in the Informations.
Evident bad faith "pertains to bad judgment as well as palpably and patently fraudulent and
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 dishonest purpose to do moral obliquity or conscious wrongdoing for some perverse or ill will"; while
gross inexcusable negligence "is the degree of negligence characterized by the want of even the
slightest care, acting or omitting to act in a situation where there is a duty to act, not inadvertently but
willfully and intentionally, with conscious indifference to consequences insofar as other persons may
be affected." 97
The SB's finding of evident bad faith, manifest partiality, and gross inexcusable negligence
grounded solely on the lack of public bidding has no basis in law or the evidence. Macairan v. People
holds that:
. . . the absence of public bidding in the procurement of goods does not automatically equate
to evident bad faith and manifest partiality. The guilt of an accused charged with violation of
[Republic Act] No. 3019 must be determined through the lens of the anti-graft and corruption
law and not the procurement law. 98
Macairan involved the procurement of medicines by DOH officers through emergency
purchases without public bidding. In reversing their conviction, We held that the DOH officers'
decision to forego public bidding was not motivated by corruption or malice. It was proven during trial
that the DOH officers simply bought the medicine from the same supplier who won the agency's most
recent bid for the purchase of the same medicines, subject to the same terms and conditions as the
previous purchase made through the most recent bid. 99 We ruled that "even if it were to be
conceded that the failure to conduct the requisite public bidding for the questioned transactions was
unjustified, no other evidence was presented to establish that petitioners' actions were animated by
malicious motive or fraudulent intent to defraud the government." 100
Similarly, the prosecution failed to adduce evidence of fraudulent intent on the part of Lupoyon
and her co-accused.
While it is true that accused-appellant/s caused the Barlig LGU to violate certain provisions of
the Deed of Donation with ABS-CBN when they moved the ABS-CBN donation out of the LGU's trust
fund account and implemented the questioned projects without public bidding, the prosecution
adduced no proof that accused-appellant/s did so with fraudulent or mala fide purpose. On the other
hand, Lupoyon openly and formally admitted that she proceeded on the basis of her opinion that the
donated funds remained private in character and therefore outside state audit jurisdiction. She also
admitted that the Open Gym project did not undergo public bidding because she did not want the
LGU to pay the 10% contractor's share required by the procurement law; while the Pathway Project
was implemented directly by the residents around Mount Amuyao as part of the stipulation in the
GMA donation that the project shall be constructed using indigenous materials. Lupoyon's
justifications, as adopted by the other accused-appellant/s, may have been legally erroneous; but
they do not rise to the level of fraud, corruption, or gross inexcusable negligence. Accused-
appellant/s simply adopted a well-intentioned but misguided measure to cut costs and maximize the
donated funds. Furthermore, the COA itself admitted that the suspensions and disallowances it
issued for the questioned projects were based on the lack of acceptable supporting documents, and
not upon any actual loss to the government. In effect, the SB penalized accused-appellant/s for
ensuring that the Open Gym and Pathway Projects were implemented within the limits of the ABS-
CBN and GMA funds. While accused-appellant/s may have violated the procurement law in doing so,
this fact does not relieve the prosecution of its duty to prove that accused-appellant/s did so with a
fraudulent or corrupt purpose.
Our ruling today should by no means be construed as a license to disregard government
procurement laws and regulations. It only highlights the stringent requirements for a conviction for
graft as defined and penalized in Republic Act No. 3019, as explained in Martel v. People:
It should be borne in mind, however, that acquitting the accused for violation of
[Republic Act No.] 3019 despite violations of the procurement law should not be viewed as
condoning the procurement irregularities. To emphasize, [Republic Act No.] 9184 contains a
penal clause where public officers and private individuals may be held liable. Should their
actions be considered as falling under this penal clause, then petitioners may be held
criminally liable under [Republic Act No.] 9184.
xxx xxx xxx
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 The demand for accountability should not be at the expense of well-meaning public
officials who may have erred in the performance of their duties but have done so without a
criminal mind. Our penal laws against corruption in the government are meant to enhance,
and not stifle, public service. If every mistake, error, or oversight is met with criminal
punishment, then qualified individuals would be hindered in serving in the government. If we
all continue to "weaponize" each misstep in governmental functions, we run the risk of losing
the many good people in the government. Again, it should be underscored that while public
office is a public trust, the constitutionally enshrined right to presumption of innocence
encompasses all persons — private individuals or public servants alike.
In this case, while the prosecution may have shown how procurement laws had not
been strictly followed, it nonetheless failed to prove beyond reasonable doubt the elements
for a violation of Section 3(e) of [Republic Act No.] 3019. 101 (Citations omitted)
Here, accused-appellant/s acted on the incorrect position that funds donated by private parties
to a local government unit remain private in character. They compounded this mistake by spending
such funds without undergoing government procurement processes, for fear that said funds may not
be sufficient for the intended purposes. Nevertheless, the record shows that said funds were used
solely for their intended purpose: the construction of basic public facilities in a far-flung town in the
Cordillera. While accused-appellant/s may have made a series of questionable — even illegal —
decisions in the construction of said facilities, the prosecution nevertheless failed to prove undue
injury to the government or to any private party: the sole act for which accused-appellant/s have
been properly charged.
ACCORDINGLY, this appeal is GRANTED. The February 16, 2021 Decision and the
September 20, 2021 Resolution of the Sandiganbayan in Criminal Case Nos. SB-16-CRM-0323 to
0324 are hereby REVERSED and SET ASIDE. Accused-appellants Magdalena K. Lupoyon, Albert
Tenglab Marafo, Edmundo Challiis Sidchayao, Clark Chatongna Ngaya, Fernando Yacam-ma
Cablog, and Danilo Rabina Lucas are ACQUITTED. The hold departure orders against them are
LIFTED. Any amount paid by way of a bail bond is ordered RETURNED.
Let entry of judgment be issued immediately.
SO ORDERED.
Inting and Dimaampao, JJ., concur.
Caguioa, J., see concurring opinion.
Singh, * J., is on official business.

Footnotes

* On official business.

1. Rollo, pp. 188-250. Penned by Associate Justice Ronald B. Moreno and concurred in by Associate
Justices Bernelito R. Fernandez and Kevin Narce B. Vivero, Associate Justice Maria Theresa V.
Mendoza-Arcega concurring separately, and Presiding Justice Amparo M. Cabotaje-Tang dissenting.

2. Id. at 198. Records (vol. 4), p. 166, Judicial Affidavit of Magdalena K. Lupoyon.

3. Records (vol. 1), pp. 244-253, July 31, 2007 FPIC-Memorandum of Agreement between the Indigenous
Cultural Communities/Indigenous Peoples of the Balangao Tribe of Barangays Gawana, Macalana,
Latang and Fiangtin of the Municipality of Barlig, Mountain Province and GMA Network, Inc., and
Deed of Donation between ABS-CBN Broadcasting Corporation and the Municipality of Barlig.

4. Id., GMA also committed to: 1) a one-time donation of PHP175,130.00 for the construction of comfort
room facilities along the pathway; 2) a quarterly donation of PHP5,000.00 for the maintenance of the
pathway; and 3) an annual donation of PHP5,000.00 for the Barlig town festival.

5. Id.

6. Id. at 252, Signature page of Deed of Donation between ABS-CBN and Barlig LGU.

7. Id. at 250, 252. Signature pages of Deed of Donation between ABS-CBN and Barlig LGU and FPIC-
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 Memorandum of Agreement between GMA and the Balangao Indigenous Communities of Barangays
Gawana, Macalana, Latang and Fiangtin, Barlig, Mountain Province.

8. Id. at 245 & 251, Deed of Donation and FPIC-Memorandum of Agreement.

9. Id. at 54, 254-255, Audit Observation Memorandum No. 09-003 dated July 5, 2009 (erroneously dated
March 11, 2009) and Copies of Official Receipts.

10. Rollo, p. 275, Appellant's Brief for Magdalena K. Lupoyon; Records (vol. 4), p. 171, Judicial Affidavit of
Magdalena K. Lupoyon; TSN, Magdalena K. Lupoyon, April 30, 2019, p. 33. See also Counter-
affidavit of Albert Tenglab Marafo, Records (vol. 1), p. 299 and July 14, 2009 Letter of Mayor
Magdalena K. Lupoyon to State Auditor III Esther F. Daoas, id. at 112.

11. Exhibit XX, "Appointment," Evidence Folder (unpaginated); Records (vol. 1), pp. 222-223, Affidavit of
Ophelia C. Witawit; Records (vol. 4), pp. 201-206, Joint Affidavits of Rexon Nasungan, Babin Fianisor,
Carino Cawayan, Carolda Wacchan, and Repsy Nawang-oy.

12. Id.

13. Records (vol. 1), p. 224, Affidavit of Ophelia C. Witawit.

14. Id. at 225-235. Attachments to the Affidavit of Ophelia C. Witawit.

15. Id. at 302. Counter-affidavit of Albert Tenglab Marafo. Marafo claimed that Cablog and Ngaya personally
distributed the laborers' wages.

16. Records (vol. 2), p. 669, Statement of Bank Reconciliation dated August 31, 2009; Exhibit WW, Evidence
Folder, unpaginated. Undated Liquidation Report signed by Albert T. Marafo and Val B. Tubay.

17. Records (vol. 1), pp. 258-259, Sangguniang Bayan Resolution No. 36, s. 2009.

18. Id. at 54-55, Audit Observation Memorandum No. 09-003.

19. Id. at 254-255 & 298, Counter-affidavit of Albert Tenglab Marafo and Copies of Official Receipts with the
handwritten annotation "Cancelled."

20. Id. at 298, Counter-affidavit of Albert Tenglab Marafo.

21. Records (vol. 4), pp. 796-812.

22. TSN, Danilo R. Lucas, August 27, 2019, pp. 16-18.

23. TSN, Edmundo Sidchayao, June 27, 2019, pp. 49-50; Records (vol. 1), p. 326, Letter dated July 14,
2009 from Mayor Magdalena K. Lupoyon to State Auditor Esther Daoas; Records (vol. 1), p. 113,
Letter dated April 28, 2010 from Mayor Magdalena K. Lupoyon to Supervising Auditor Hilario G.
Dumasan.

24. Records (vol. 1), pp. 162-216, Compiled Receipts of Materials, Labor and Other Incidental Expenses in
connection with the Construction of the Open Gym.
25. Exhibits NN-3 and NN-4, Evidence Folder, unpaginated. August 17, 2012 Memorandum from Audit Team
Leader Hilario G. Dumasan for Commission on Audit-Cordillera Regional Director Luis S. Mejia.

26. Exhibit III, Evidence Folder, unpaginated, August 31, 2009 Statement of Bank Reconciliation signed by
Municipal Accountant Val B. Tubay; TSN, Ester F. Daoas, April 10, 2018, p. 32; TSN, Magdalena K.
Lupoyon, April 30, 2019, pp. 47-50.

27. Records (vol. 1), pp. 162-216, Compiled Receipts of Materials, Labor and Other Incidental Expenses in
connection with the Construction of the Open Gym.

28. Id. at 164, 215 & 337, Acknowledgment Receipt dated July 30, 2009, Compiled Receipts of Materials,
Labor and Other Incidental Expenses in connection with the Construction of the Open Gym, and
Certification dated December 22, 2009 signed by Clark C. Ngaya.

29. Id. at 219-220, Accomplishment/Inspection Report and Certificate of Acceptance.

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 30. Records (vol. 3), p. 4, Judicial Affidavit of Esther F. Daoas.

31. Also referred to in the records as Ester F. Daoas.

32. Records (vol. 1), p. 326, July 14, 2009 Letter from Mayor Magdalena K. Lupoyon to SA Esther Daoas.

33. Id.

34. Exhibit AA, Evidence Folder, unpaginated. Notice of Suspension (NS) No. 2010-003-101 dated
September 1, 2010; Exhibit QQ, Evidence Folder, unpaginated. Notice of Settlement of
Suspension/Disallowance/Charge (NSSDC) No. 12-05, dated December 28, 2012; Records (vol. 4), p.
648. NSSDC No. 13-001 dated July 11, 2013.
35. Exhibit BB, Evidence Folder, unpaginated. Notice of Disallowance (ND) No. 11-001-101 (09) dated
January 18, 2011.

36. Exhibit TT, Evidence Folder, unpaginated. ND No. 13-002-100 (10) dated July 12, 2013.

37. Exhibit JJJ, Evidence Folder, unpaginated. ND No. 17-001-300 (09) dated August 18, 2017.
38. Exhibit AA-3, Evidence Folder, unpaginated. NS No. 2010-003-101 dated September 1, 2010, p. 4.

39. Also referred to in the records as "Ison Laolgan."

40. Records (vol. 1), pp. 31-42. Joint Affidavit.

41. Evidence folder, unpaginated, Exhibits JJJ, JJJ-1, and JJJ-2.

42. Records (vol. 1), pp. 7-21. August 10, 2015 OMB Resolution, signed by Graft Investigation and
Prosecution Officer I Blesilda T. Guano and approved by Ombudsman Conchita Carpio-Morales.

43. Id. at 1. Information in SB-16-CRM-0323 dated March 21, 2016.

44. Id. at 3-4. Information in SB-16-CRM-0324 dated March 21, 2016.

45. TSN, Ayson Naulgan, April 5, 2018 and July 26, 2018; TSN, Jeb C. Constancio, July 30, 2018.

46. Rollo, pp. 192-196. SB Decision. Citations omitted.

47. Id. at 198-200.

48. Id. at 200-201.

49. Id. at 201-202.

50. Id. at 202.

51. Id. at 202-203.

52. Id. at 204-211.

53. Id. at 213-215, 259-260. SBN Decision and Resolution on Motion for Reconsideration.

54. Id. at 215-216.

55. Lupoyon claimed that the decision was reached by consensus between her and the Sangguniang Bayan,
while Cablog, Ngaya, and Sidchayao claim that Lupoyon and Marafo requested the transfer.

56. Rollo, pp. 211-216. SB Decision.

57. Id. at 217-221.

58. Id. at 222.

59. Id. at 247-250. Separate Opinion of Justice Mendoza-Arcega.

60. Id. at 227-236. Dissenting Opinion of Justice Cabotaje-Tang.

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 61. Id. at 243-245.

62. Id. at 243.

63. Id. at 251-268. September 20, 2021 Resolution in SB-16-CRM-0323-0324, penned by Associate Justice
Ronald B. Moreno, with Associate Justices Bernelito R. Fernandez and Kevin Narce B. Vivero
concurring, Associate Justice Maria Theresa V. Mendoza-Arcega concurring separately, and
Presiding Justice Amparo M. Cabotaje-Tang dissenting.

64. Id. at 112-119, 157-168, 276-286, 325-335. Appeal brief for Ngaya, Sidchayao and Cablog, appeal brief
for Marafo, appeal brief for Lupoyon, and appeal brief for Lucas.

65. Id. at 119-128, 169-178, 286-295, 335-339. Appeal brief for Ngaya, Sidchayao and Cablog, appeal brief
for Marafo, appeal brief for Lupoyon, and appeal brief for Lucas.

66. Id. at 128-133, 178-182, 293-295. Appeal brief for Ngaya, Sidchayao and Cablog, appeal brief for
Marafo, and appeal brief for Lupoyon.

67. Id. at 133-134, 339-347. Appeal brief for Ngaya, Sidchayao and Cablog; Appeal brief for Lucas.

68. Id. at 295-301. Appeal brief for Lupoyon.

69. Id. at 478-482. Appeal brief for the People.

70. Villarosa v. People, 875 Phil. 270, 299-300 (2020) [Per C.J. Peralta,En Banc.]

71. Ramiscal, Jr. v. People, 913 Phil. 241 (2021) [Per J. Caguioa, First Division];Jacinto v. Sandiganbayan,
258-A Phil. 20, 26 (1989) [Per J. Gancayco, En Banc]; Mejorada v. Sandiganbayan, 235 Phil. 400,
407-409 (1987) [Per J. Cortes, En Banc].

72. People v. XXX, 871 Phil. 457, 471 (2020) [Per J. Zalameda, Third Division].

73. Cabrera v. Sandiganbayan, 484 Phil. 350, 362 (2004) [Per J. Callejo, Sr.,En Banc]. Citations omitted.

74. Fonacier v. Sandiganbayan, 308 Phil. 660, 702 (1994) [Per J. Vitug,En Banc].

75. See Gallego, et al. v. Sandiganbayan, 201 Phil. 379, 384 (1982) [Per J. Relova,En Banc], where the
information specified the following punishable acts: (a) the giving of "unwarranted" benefits through
manifest partiality; (b) the giving of "unwarranted" benefits through evident bad faith; and, (c) the
giving of "unwarranted" benefits through gross inexcusable negligence while in the discharge of their
official and/or administrative functions.

76. Burgos v. Sandiganbayan, 459 Phil. 794, 806-807 (2003) [Per J. Azcuna, First Division].

77. People v. Cerezo, G.R. No. 252173, March 15, 2022 [Per J. Gaerlan, First Division];Cabrera v.
Sandiganbayan, 484 Phil. 350, 362 (2004) [Per J. Callejo, Sr.,En Banc].

78. Renales v. People, 904 Phil. 456 (2021) [Per J. Carandang, First Division].

79. Estrada v. Sandiganbayan, 421 Phil. 290, 358 (2001) [Per J. Bellosillo,En Banc].

80. Bautista v. Sandiganbayan, 387 Phil. 872, 881-882 (2000) [Per J. Bellosillo, Second Division]. The
Bautista Court refers to causing undue injury and granting unwarranted benefits as "modes" of
committing the offense defined in Section 3 (e).

81. Cabrera v. Sandiganbayan, 484 Phil. 350, 362 (2004) [Per J. Callejo, Sr.,En Banc].

82. Records (vol. 1), pp. 1, 3-4. Informations.

83. Villarosa v. People, 875 Phil. 270, 308 (2020) [Per C.J. Peralta,En Banc].

84. Rollo, pp. 239 & 243. Dissenting Opinion of Justice Cabotaje-Tang.

85. Renales v. People, 904 Phil. 456, 470-471 (2021) [Per J. Carandang, First Division].
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 86. Sabaldan v. Office of the Ombudsman, 874 Phil. 144 (2020) [Per J. J.C. Reyes, Jr., First Division].

87. Id. at 155-156.

88. Renales v. People, 904 Phil. 456, 472 (2021) [Per J. Carandang, First Division].

89. Rollo, p. 245. Dissenting opinion of Justice Cabotaje-Tang.

90. 2009 Revised Rules of Procedure of the Commission on Audit, Rule I, Sec. 4 (n), and Rule II, Sec. 1.

91. Evidence folder, unpaginated, Exhibit JJJ. Notice of Disallowance No. 17-001-300 (09) dated August 18,
2017.

92. See Records (vol. 1), pp. 222-224, 225-235. Affidavit of Ophelia C. Witawit and attachments.

93. Records (vol. 1), p. 123. GMA Deed of Donation.

94. Evidence folder, unpaginated, Exhibit KK and Records (vol. 3), pp. 167-168. Memorandum dated
January 3, 2012 from COA-Mountain Province Supervising Auditor Dibangkitun L. Ayoong to COA-
CAR Director III Lynn S.F. Sicangco.
95. Evidence folder, unpaginated, Exhibit Y. Inspection Report for Infrastructure Projects dated July 30, 2010
signed by Technical Audit Specialist Joseph O. Padcayan.

96. See Records (vol. 2), p. 660 and Evidence Folder, unpaginated (Exhibit ZZ). Handwritten Subsidiary
Ledger; Records (vol. 2), p. 669 and Evidence Folder, unpaginated (Exhibit III), Statement of Bank
Reconciliation dated August 31, 2009 signed by Acting Municipal Accountant Val B. Tubay.

97. People v. Gelacio, G.R. Nos. 250951 and 250958, August 10, 2022 [Per C.J. Gesmundo, First Division];
Quiogue v. Estacio, 893 Phil. 674, 686 (2021) [Per J. M.V. Lopez, Second Division];Chung v. Office
of the Ombudsman, 899 Phil. 281, 294 (2021) [Per J. Caguioa, First Division];Martel v. People, 895
Phil. 270, 287 (2021) [Per J. Caguioa, En Banc].

98. Macairan v. People, 899 Phil. 75, 107 (2021) [Per J. Caguioa, First Division].

99. Id.

100. Id.

101. Martel v. People, 895 Phil. 270, 313-314 (2021) [Per J. Caguioa,En Banc].

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