Former Veterans Federation of the Philippines (VFP) president Bonifacio Garcillan De Gracia has been acquitted of graft charges by the Sandiganbayan over the alleged anomalous lease of properties belonging to the government-owned and controlled corporation (GOCC)..

“When evidence of the prosecution fails to prove the guilt of the accused beyond reasonable, the court must acquit,” stated the 33-page decision written by Associate Justice Maria Theresa V. Mendoza-Arcega and promulgated on Tuesday, Nov. 5.

Thus, De Gracia was cleared of the charges filed against him for violations of Sections 3(e) and (g) of Republic Act (RA) 3019, the Anti-Graft and Corrupt Practices Act.

The court also ordered the lifting of the Hold Departure Order (HDO) issued against him as well as the release of the cash bonds he posted.

De Gracia was accused of having entered in 2018 unauthorized lease contracts with IBEX Communication Technologies which was allegedly given unwarranted benefits since the rental rates were far below the fair market value and grossly disadvantageous to the government.

“The two criminal cases against the accused are centered on the allegation that the accused, without the necessary imprimatur/approval of the VFP Executive Board and the Secretary of National Defense, entered into six lease contracts with IBEX Communications & Technologies, Inc. and signed the same on behalf of the VFP in his capacity as the GOCC’s President,” the Sandiganbayan noted.

However, the Sandiganbayan ruled that “we find no evidence on record that would show that the accused was motivated by evident bad faith or manifest partiality when he executed the contracts with IBEX, or that he gave unwarranted preference, benefits or advantage to the latter.”

“We also find that there is not enough evidence to prove that the contracts entered into were manifestly or grossly disadvantageous to the government,” it added.

The anti-graft court explained that “the prosecution failed to prove that the lease contracts were irregular."

“In fact, a closer look at the subject lease contracts would reveal that they did not deviate from the standard lease contracts executed by the previous VFP President or the General Manager signing on behalf of the VFP,” it said.

“Moreover, the TWG (technical working group) Report also confirmed that for the past years even before the term of the accused, the lease contracts were sent to the DND (Department of National Defense) not for approval, but for ratification, because they are only sent to the DND after they have already been executed between the VFP and the lessees,” it added.

At the same time, the anti=graft court said that De Gracia has in his favor “the presumption of regularity in the performance of official duties which the records failed to rebut.”

Though he signed the contracts, the court pointed out “De Gracia’s defense that he relied on his subordinates finds basis in jurisprudence.”

“As to the allegation that the rental rates used by the VFP in the contract with IBEX being far below the fair market value of the leased properties and the rates provided for under the sublease contracts, we believe the prosecution failed to prove such claim, since there was no document presented showing a schedule of actual rental rates for commercial or industrial warehouses in the area where VFP-1C is located,” the court also said. 

Citing the findings of the Commission on Audit (COA) in the years 2015, 2016 and 2018, the Sandiganbayan said that this showed that “the income of the VFP derived from rent has increased.”