The Sandiganbayan has convicted retired Philippine Navy Rear Admiral Gilmer B. Batestil and private individual Edna R. Gianan of several counts of graft and malversation of public funds in the irregular and anomalous procurement of medicines and other medical and dental supplies in 1990 and 1991.

Batestil was convicted of 20 counts of malversation and 16 counts of graft, while Gianan, owner of ERG Marketing, was found guilty of nine counts of malversation and five counts of graft. Their co-accused, Ermina L. Castillo, was found guilty of one count of graft while Victoriano Chua was guilty of four counts of graft.

They were sentenced to prison terms ranging from 12 to 16 years for malversation of public funds and from six to 10 years for graft.

Batestil and Gianan were ordered to pay a fine of P17,093,717 and P7,699,221, respectively. They were also ordered to indemnify the government of the same amounts of the fines imposed on them with six percent interest per annum until fully paid, and barred perpetually from holding public office.

The Sandiganbayan acquitted Batestil in four counts of graft, Gianan in one graft charge, and Castillo in 18 graft charges.

The other accused who were acquitted included retired Capt. Julian L. Advincula, Supply Officer Cirilo Saldon, Capt. Jesus T. Durian, Capt. Swen P. Mamhot, Celso Tablante, Assistant Logistics Officer Virgilio Ortega, Lourdes S. Cobarrubias, Emmanuel D. Gob, Capt. Benjamin P. Quines, Dario T. Fajardo, retired Commodore Plaridel Garcia, retired Commodore Rene Leandro R. Ebro, Commander Julito Casilan II, and Manuel R. Tuazon.

The audit conducted on the purchases led to the filing of 20 charges in violation of Article 217 of the Revised Penal Code or malversation of public funds, 170 charges in violation of Section 3(e) Republic Act No. 3019 or the Anti-Graft and Corrupt Practices Act, and violation of Section 4(a) of R.A. 6713 or the Code of Conduct and Ethical Standards for Public Officials and Employees.

Only Capt. Walter E. Briones and Vice Admiral Mariano J. Dumancas Jr. were charged with Section 4(a) of R.A. 6713. Briones had remained at large and the case against him had been archived, while Dumancas Jr. had died and the charges against had been dismissed.

During trial, the anti-graft court said that Batestil held the position of procurement officer who was in charge of preparing purchase orders (POs) and disbursement vouchers (DVs). By his own admission, payments would not have been made had the DVs subject of this case not passed through his office.

Gianan admitted that she received the checks representing payments for the medicines and medical supplies. However, the prosecution's evidence was able to prove that Gianan did not deliver anything to the Philippine Navy.

"Despite this non-delivery, she was allowed to take huge amount of money from the government to its grave damage and prejudice," the court’s decision said.

The court also said that ERG Marketing had no license as a drug retailer or distributor, and the audit team could not even locate the alleged store of ERG Marketing at its given address.

“Here, the acts of accused Batestil in signing the subject POs and DVs and the acts of accused Gianan in signing the POs and DVs and thereafter encashing the checks show the concurrence of will and unity of purpose between the said accused in defrauding the government,” the court ruled.

The 585-page decision was written by Presiding Justice Amparo M. Cabotaje-Tang with the concurrence of Associate Justices Bernelito R. Fernandez and Ronald B. Moreno.

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