The Sandiganbayan has convicted former Davao del Norte congressman Arrel R. Olaño, businesswoman Janet Lim Napoles, and three others of graft and malversation of public funds in the misuse of the then legislator’s P7.72 million priority development assistance fund (PDAF) in 2007.
Also convicted were former Technology Resource Center (TRC) group manager Maria Rosalinda M. Lacsamana, three counts each of graft and malversation; Mylene T. Encarnacion of the Countrywide Agri and Rural Economic Development Foundation, Inc. (CARED), one count each of graft and malversation; and Evelyn D. de Leon of the Philippine Social Development Foundation Inc. (PSDFI), two counts each of graft and malversation.
In SB-16-CRM-0242, Olaño, Lacsamana, Napoles, and Encarnacion were sentenced to six to 10 years imprisonment with perpetual disqualification from holding public office. They were also ordered to indemnify the government P1,890,000.
In SB-16-CRM-0243, another graft charge, Olaño, Lacsamana, Napoles, and De Leon were sentenced to six to 10 years imprisonment and were ordered to indemnify the government P3,830,000.
In SB-16-CRM-0244, the third graft charge, Olaño, Lacsamana, Napoles, and De Leon were sentenced to six to 10 years imprisonment and were ordered to indemnify the government P2,000,000.
In SB-16-CRM-0245, Olaño, Lacsamana, Napoles, and Encarnacion were found guilty of malversation and were sentenced to six to 12 years imprisonment. They were also ordered to pay a fine of P1,890,000.
In SB-16-CRM-0246, Olaño, Lacsamana, Napoles, and De Leon were found guilty of malversation and sentenced to 10 to 16 years imprisonment with a fine of P3,830,000.
In the other malversation charge, SB-16-CRM-0247, Olaño, Lacsamana, Napoles, and De Leon were sentenced to six to 12 years imprisonment and ordered to pay a fine of P2,000,000.
In the direct bribery charge, only Olaño was found guilty and was sentenced to four to nine years imprisonment. His fine was P9,525,000, which is triple the value he received as kickbacks.
In all cases, former Department of Budget and Management (DBM) officials Mario L. Relampagos, Rosario S. Nuñez, Lalaine N. Paule, and Marilou D. Bare, as well as former TRC director General Dennis L. Cunanan, manger III Francisco B. Figura, accountant Marivic V. Jover, and budget officer IV Consuelo Lilian R. Espiritu were acquitted of the crimes charged due to the failure of the prosecution to prove their guilt beyond reasonable doubt.
Meanwhile, the cases against former TRC director general Antonio Y. Ortiz have been ordered archived pending his arrest or voluntary surrender.
It was found that Olaño received P3.175 million from Napoles for endorsing PSDFI and CARED as "project partners" in implementing livelihood projects for barangays in the 1st district of Davao del Norte.
In its decision promulgated on June 30, 2023, the anti-graft court found that the accused acted in conspiracy to funnel Olaño's PDAF to Napoles.
Olaño's receipt of kickbacks and commissions were all recorded in the daily disbursement report (DDR) of Napoles' company, JLN Corporation, which were confirmed by the Anti-Money Laundering Council in its official Bank Inquiry Report, the court said.
It also said the National Bureau of Investigation (NBI) conducted a forensic examination on the DDR and found the file to be with "integrity" and "zero error."
"Accused Olaño failed to justify the reason why he endorsed said NGOs which was clearly established by the evidence as fake, unqualified, and/or unaccredited," the court said.
"The transactions funded by the PDAF of accused Olaño were considered irregular and illegal after special audit for being violative of existing laws, rules, and regulations and for being unliquidated," it added.
Associate Justice Edgardo M. Caldona wrote the 57-page decision with the concurrence of Second Division Chairperson Oscar C. Herrera Jr. and Associate Justice Arthur O. Malabaguio.