While the Sandiganbayan reduced the fine imposed on former Mayor Angel Viray Peliglorio Jr. and a private contractor in their conviction for malversation of public funds, the court ordered them to pay civil liability as additional penalty.

Peliglorio and Izumo Contractors, Inc. President and Chief Executive Officer Cedric C. Lee were convicted of malversation in the construction of the Mariveles Public Market in 2005.

They were sentenced to a prison term ranging from 12 to 18 years and were ordered to pay a fine of P23,470,500, which was equivalent to the amount malversed. They were acquitted of graft charge.

Peliglorio and Lee filed separate motions for reconsideration, both praying for acquittal in their malversation charge. Peliglorio said that he was never in custody of the money reportedly malversed, while Lee argued that there was no evidence that proved he misappropriated public funds for his own personal use or benefit.

Ruling on the motions, the anti-graft court said that “there are no new matters that will prompt this court to either amend, alter, modify, or reverse the assailed Decision” except on two specific issues -- the inclusion of taxes paid as part of the fine and the restitution and civil liability of both accused.

“This Court, after revisiting the computations on the amounts paid, found that only the amount of P19,442,267.48 was acknowledged to have been received by accused-movant Lee,” the court’s resolution stated.

“Hence, this Court reduces the amount of the fine imposed to P19,442,267.48, the actual amount malversed,” it said.

But the resolution stated that there is an “imperative need” to modify its earlier decision regarding their civil liability and ordered them to "jointly and severally" pay the government P19,442,267.48 with interest of six percent per annum from finality of the decision until fully paid.

"While there are no reversible errors in finding both accused guilty of malversation... this Court necessarily modifies the amount of fine imposed and to require both accused to pay the amount malversed by way of civil liability, to both conform to the law and jurisprudence," the resolution stated.

Associate Justice Bernelito R. Fernandez wrote the 12-page resolution dated last Sept. 14 with the concurrence of Presiding Justice Amparo M. Cabotaje-Tang and Associate Justice Ronald B. Moreno.

Their graft and malversation charges stemmed from the transfer of public funds to Izumo Contractors "even without procedural safeguards, guarantee of performance, and in violation of Commission on Audit rules as advance payment for the construction of Mariveles Public Market" on March 27, 2005. The prosecution said and the court affirmed that the construction never commenced.

In its 54-page decision, the anti-graft court said that none of the "safeguards" were complied with before payment was released to Izumo Contractors.