Former Mayor Melquiades I. Gaite of Baao town in Camarines Sur has been convicted of graft by the Sandiganbayan for the 2014 lease of portions of the public market for a term which was beyond the period allowed by the municipal council.

Gaite was sentenced to a prison term ranging from six to 10 years with perpetual disqualification to hold public office.

In its decision, the Sandiganbayan said that the prosecution was able to prove that Gaite gave Lanvert Consolidated Complex Development Corporation, Inc. (Lanvert) unwarranted benefit and advantage when he entered into a contract of lease with the company "beyond what was provided and allowed by Municipal Ordinance No. 3, series of 2012, to the damage and prejudice of the government.”

Gaite entered into a 25-year contract with Lanvert, but the prosecution told the court the ordinance stated that the term of lease should be "not more than five years."

During the trial, Gaite told the court he signed the contract based on Market Awards and Regulations Committee (MARC) Resolution No. 2014-002-A which allowed a term of more than five years considering the amount of capital investments that would be shelled out by the lessee.

But the Sandiganbayan, in a decision promulgated last March 4, ruled that a prior authorization from the municipal council is required before the municipal mayor can enter into a lease contract on behalf of the municipality.

The court stressed that the MARC, while an entity created by virtue of Municipal Ordinance No. 3, series of 2012, cannot replace the authorization of the municipal council.

"It is the Sanggunian (council) itself, and not any other entity, that must give prior authorization to the local government in business transactions and sign contracts on its behalf," the court said.

"After a judicious scrutiny of the pieces of evidence and arguments presented by both parties, the Court finds that accused is criminally liable for violation of Section 3(e) of Republic Act No. 3019," it ruled.

Associate Justice Alex L. Quiroz wrote the decision with the concurrence of Associate Justices Lorifel L. Pahimna and Bayani H. Jacinto.