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SC clears Mindoro solon, 2 others of graft

By J.Lo

"Petitioners Bawasanta, Valencia and Umali are hereby acquitted for failure of prosecution to prove their guilt beyond reasonable doubt," the Supreme Court cleared former Oriental Mindoro congressman Rodolfo Valencia, Rep. Alfonso Umali Jr. and Provincial board member Romualdo Bawasanta in connection with provincial funds loaned to private individual in 2004.

At that time, Valencia was the governor while Umali, who was also treasurer of the Liberal Party, was provincial administrator.

In 37-page decision penned by Associate Justice Samuel Gaerlan, the high court granted their petitions as it reversed and set aside April 20, 2015 decision and July 20, 2015 resolution of anti-graft court.

"The hold-departure order issued against them by reason of this case is hereby lifted and set aside…any amount paid by way of bail bond is ordered returned," it stressed.

Valencia, Umali and Bawasanta were convicted for paving the way for P2.5-million loan to engineer Alfredo Atienza in 1994.

The loan was supposed to finance the cost of repair, operation and maintenance of Atienza's sea vessel, the MV Ace, which was intended to ply Calapan-Batangas-Calapan route.

The Sandiganbayan held that loan violated fundamental rule public funds shall be used for public purposes.

For violating anti-graft law, they were sentenced to jail terms of six years and one month up to 10 years, and were ordered to return P2.5 million to the provincial coffers.

Moreover, court forfeited their retirement and gratuity benefits and ordered that they be perpetually disqualified from holding public office until the case was elevated before high tribunal.

In clearing Valencia, Umali and Bawasanta, the court pointed out that "Section 22(5) of the Local Government Code empowers local government units to enter into contracts."

"We cannot subscribe to SB's conclusion, still premised on its finding that it is intended solely for private benefit of private person, that credit agreement is an invalid exercise of Oriental Mindoro LGU's loans and financing powers," the Supreme Court said.

Contrary to the position of Sandiganbayan, according to the high court, "the LBP loan is compliant with Section 297(a) of the LGC."

"While it may be conceded that the government was disadvantaged by the posthaste execution of the Credit Agreement, it must be remembered that Section 3(g) of Republic Act 3019 only penalizes grossly and manifestly disadvantageous transactions," the high tribunal said.

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