The Supreme Court (SC) has acquitted the former Cabuyao City mayor who was convicted by the Sandiganbayan of graft in 2019 for being a director of a private development bank when he was the city’s chief executive.

Acquitted in the SC resolution which was made public last March 21 was then Mayor Isidro Lebrilla Hemedes Jr. who served as mayor from 2007 t0 2016. Cabuyao town in Laguna became a city in 2012.

Hemedes was charged with alleged violation of Section 3 (h) of the Anti-Graft and Corrupt Practices Act which penalizes a public officer from being “a director or indirectly having financing or pecuniary interest in any business, contract or transaction in connection with which he intervenes or takes part in his official capacity, or in which he is prohibited by the Constitution or by any law from having any interest.”

Complainant Feliciano I. Lavina alleged that Presidential Decree No. 119, the Private Development Banks Act, and the General Banking Law of 2000 prohibit appointive or elective official from being an officer of any private bank, like a member of the bank’s board of directors, whether on full or part-time capacity.

Lavina also alleged that the Code of Conduct and Ethical Standards for Public Officials and Employees prohibits public officials from engaging in private practice of their profession unless authorized by law.

In his defense, Hemedes said his being a member of the board of directors of the Luzon Development Bank (LDB) did not cause prejudice to public service or to Cabuyao City. He said he worked full time as the city’s chief executive.

In convicting Hemedes, who was sentenced to a prison term ranging from six years and one month to eight years with perpetual disqualification to hold public office, the Sandiganbayan junked the former mayor’s defense that he did not take any active part in the management of LDB affairs as a corporate entity from 2006 to 2014 and had no direct or indirect financial or pecuniary interest in the bank.

Hemedes appealed the Sandiganbayan ruling before the SC which ruled:

“On this score, the Sandiganbayan seriously erred when it held accused-appellant (Hemedes) liable for the crime charged even when the clear and simple import of PD No. 119 merely specifies those who are qualified or disqualified to hold particular positions in a private development bank.

“Even if accused-appellant is disqualified from becoming a director in LDB, he remains a stockholder thereof, which is not prohibited in PD No. 119. This reinforces the conclusion that PD No. 119 is not the law that prohibits the holding of interest of public officials in a business, contract or transaction within the ambit of Section 3(h) of RA No. 3019.

“If at all, the liability of accused-appellant is only administrative in nature for having transgressed an established and definite rule of action, when he concurrently held the position of city mayor and director of LDB in violation of Section 1, PD No. 119.

“In fact, he was already held liable for the said infraction when he was adjudged guilty for Simple Misconduct in OMB-L-A-15-0271.

“Insofar as his criminal liability is concerned, the prosecution has failed to establish with moral certainty all the elements of the crime charged. More specifically, it was not established beyond reasonable doubt that the third element exists -- that accused-appellant is prohibited by a law from having an interest in LDB.

“To stress anew, PD No. 119 does not prohibit him from having an interest in LDB. He can have such interest, only that he is prohibited from holding certain positions.

“In all criminal prosecutions, the prosecution bears the burden to establish the guilt of the accused beyond reasonable doubt. In discharging this burden, the prosecution's duty is to prove each and every element of the crime charged.

“Having failed in this respect, the constitutional presumption of innocence must be upheld. Hence, the acquittal of accused-appellant for violation of Section 3(h) of RA No. 3019 must follow as a matter course.

“WHEREFORE, premises considered, the Decision dated Feb. 1, 2019 and the Resolution dated March 22, 2019 of the Sandiganbayan in SB-18-CRM-0 152 are hereby REVERSED and SET ASIDE. Accused-appellant Isidro Lebrilla Hemedes Jr. is ACQUITTED of the charge of violation of Section 3(h) of Republic Act No. 3019 for failure of the prosecution to prove his guilt beyond reasonable doubt. So ORDERED."