The Sandiganbayan has convicted Evelyn Catharine O. Silagon, chairperson of the board of directors (BOD) of the Oroquieta City Water District (OCWD), for converting to her personal use and benefit some P2.9 million of funds of the water firm.
Silagon was convicted of 34 counts of violation of Article 217 paragraph 1 of the Revised Penal Code (RPC) or malversation of public funds. For each count, she was sentenced to four months to three years imprisonment.
Silagon was also convicted of 24 counts of violation of Article 217 paragraph 2 of RPC and sentenced to two to eight years imprisonment for each count.
"In the service of her sentence, accused Silagon shall be entitled to the benefit of the three-fold rule as provided in Article 70 of the RPC, as amended," the anti-graft court said.
The three-fold rule states that the maximum duration of the sentence should not be more than three times the length of time corresponding the most severe of the penalties imposed upon an accused but in no case should exceed 40 years.
Silagon was also imposed perpetual disqualification from holding public office and was ordered to pay a fine P2,924,769.42, the amount of the funds malversed.
"She shall further pay the OCWD the same amount plus interest of six percent per annum, to be reckoned from the date of finality of this decision until full payment, by way of her civil liability," the court added.
On the other hand, Silagon was acquitted of 19 counts of malversation for failure of the prosecution to prove her guilt beyond reasonable doubt.
Her co-accused OCWD officials -- former department manager Bobbith A. Baloncio, finance officer Nelda Antonette B. Cabatingan, division manager-administration Rosalyn P. Policarpio, finance officer Arleen C. Adlaon, finance officer Joey Kim M. Villabert -- a job order worker who resigned January 2011 -- general manager Ricardo M. Ravacio, and senior corporate account analyst Leonito E. Loma were acquitted of their criminal charges for failure of the prosecution to prove their guilt beyond reasonable doubt.
The cases against BOD member Diego T. Yew and operations manager Alejandro G. Berenguel had been dismissed in light of their deaths.
The OCWD officials were charged with malversation by issuing checks and vouchers then issuing them to persons who are incumbent members of the BOD.
The prosecution told the court that Ravacio approved all the disbursement vouchers while Baloncio, Adlaon, Policarpio, Lom, Cabatingan, and Villabert certified to the lawfulness of the disbursements.
It also said that the water firm officials conspired with the payees of the illegal disbursements, such as Silagon, Loma, Ravacio, and Yew.
The anti-graft court said only Silagon should be held liable for the crimes charged.
"This Court opines that the accountability of accused Silagon as chairperson of OCWD is explicitly imposed in Section 102 of Presidential Decree 1445, which states that 'the head of any agency of the government is immediately and primarily responsible for all government funds and property pertaining to his [or her] agency,'" the decision stated.
It said that Silagon is one of the authorized signatories of OCWD checks, even with respect to those where she was named as payee.
"It is also worth emphasizing that accused Silagon did not deny having received the funds covered by the subject disbursement vouchers. In fact, she declared that the monies received were owed to her by OCWD as reimbursement for the expenses she incurred and services rendered in relation to the de-annexation of the water district," the court said.
It also said that Cabatingan is an accountable officer, but Baloncio, Policarpio, and Adlaon's positions do not entail control and responsibility over OCWD funds.
Considering that the checks and proceeds were released to Silagon before the preparation and approval of the corresponding disbursement vouchers, the court did not hold Baloncio, Cabatingan, Policarpio, Adlaon, and Villabert liable for conspiring with one another to facilitate the release of OCWD funds to Silagon.
On the other hand, the court said that Silagon admitted that she received nearly P5 million, which is the aggregate amount involved in the cases.
While Silagon said that the money was owed to her by the government, the court found her defense "untenable."
"She failed to present evidence in the form of a contract or official receipts to prove that she is entitled to professional fees and reimbursement of expenses purportedly incurred for the de-annexation of OCWD. As mandated by law, claims against government funds shall be supported with complete documentation," the court said.
Associate Justice Lorifel L. Pahimna wrote the 104-page decision dated May 25, 2023 with the concurrence of Fourth Division Chairperson Michael Frederick L. Musngi and Associate Justice Bayani H. Jacinto.