The Sandiganbayan has dismissed the criminal charges filed against former Quezon City 2nd District congresswoman Mari Grace Preciosa H. Castelo and 10 others who were reportedly involved in the ghost hiring of workers for the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program from 2020 to 2021.

Castelo and the others filed separate motions for reconsideration and asked the anti-graft court to reverse its resolution that denied their motions to dismiss the charges.

In her motion, Castelo argued that the charges filed against them were insufficient in form as it did not state the acts or omissions with respect to graft and estafa complaints.

The other accused claimed that the element of conspiracy indicated was a "broad and sweeping allegation" and was therefore a violation of due process.

The anti-graft court did not discuss further their arguments and merely adhered to the Supreme Court’s (SC) April 2 resolution which it received last June 25.

The SC resolution granted the petitions for certiorari of the accused and nullified the charges of graft and estafa through falsification "since it is clear in these cases that from the very beginning, there has been an abject paucity of evidence to establish probable cause against Rep. Castelo et al... the Court is duty bound to step in and order the dismissal of these cases to protect their right against unjust prosecution."

"In view of the Supreme Court resolution dated April 2, 2025 and the Entry of Judgment dated July 11, 2025, the court dismisses the cases as there being no probable cause for the Ombudsman to file the Informations (criminal charge sheets) in the first place," the Sandiganbayan’s resolution stated.

The resolution was written by Third Division Chairperson Associate Justice Karl B. Miranda with the concurrence of Associate Justices Ronald B. Moreno and Edgardo M. Caldona.

Castelo, together with her Political Affairs Officer Maria Theresa D. Encallado as well as office staff and volunteers Annabelle O. Ocfemia, Edilbert P. Valerio, and Eliseo G. Hermoso, Rosalie Linga Buena, Margie C. Varon, Jacqueline N. Sales, Elizabeth D. Martinez, Elnor V. Magculang, and Emma F. Agraan were initially charged with violations of Section 3(e) of Republic Act No. 3019, the Anti-Graft and Corrupt Practices Act, and Estafa through Falsification of Public Documents under Article 215(2)(a) in relation to Article 171(4) of the Revised Penal Code.

They allegedly submitted falsified documents such as Letters of Intent, Work Programs, Lists of Beneficiaries, and Daily Time Records (DTRs) to the Department of Labor and Employment (DOLE) that processed and approved, through the Palawan Express Remittance Center, the payment of wages to the supposed beneficiaries of TUPAD in Barangay Batasan Hills, Barangay Commonwealth and Barangay Holy Spirit, Quezon City in the total amount of P1,090,110.

However, state prosecutors alleged that the beneficiaries did not really render any service. The accused themselves reportedly collected for themselves a substantial portion of the wages from each beneficiary, they also alleged.