The Sandiganbayan convicted of graft former mayor Lani S. Candolada of Tulunan town in North Cotabato in the irregular payment of P3.73 million mobilization fee for the rehabilitation of a farm to market road project in 2015.

Candolada was sentenced to six to 10 years imprisonment with perpetual disqualification from holding public office.

She was also ordered to indemnify the municipality of P373,997.65 and the Department of Agriculture (DA) of P3,365,978.82 or a total of P3,739,976.47 as actual damages, plus interest rate of six percent per annum.

The case against her stemmed from the release of P3,739,976.47 to Jargon Construction and Supply as mobilization fee for the Rehabilitation of Paraiso-Daig Farm to Market Road Project in Barangay Paraiso-Daig in the municipality even if the project had already been suspended as early as Jan. 29, 2015.

During the trial, Candolada denied the accusation of bad faith and claimed that she honestly believed that Jargon Construction was entitled to the release of the mobilization fee upon the issuance of the notice to proceed.

However, while the anti-graft court agreed that Candolada's actions were not motivated by any corrupt or ill motive, it found that they were characterized by gross inexcusable negligence.

"The core issue lies in the timing of the disbursement, not merely in Jargon's entitlement," the court said.

Jargon Construction received on Jan. 19, 2015 the Notice to Proceed dated Jan. 12, 2015. Four days after receipt of the notice, the firm formally requested the release of the mobilization fee. Pending submission by Jargon of the required bank guarantee, Candolada issued Suspension Order No. 01 dated Jan. 29, 2015.

"It should be noted that the suspension order was issued to facilitate a revision of the project's design parameters, which ultimately led to a substantial increase in the estimated project cost -- a fact of which accused Candolada was fully aware," the court said.

When construction activities are suspended, the court said that it only follows that mobilization fees or any advance payment should not be released.

The anti-graft court said: "Verily, accused Candolada's gross and inexcusable negligence is manifest in her act of releasing the mobilization fee despite the suspension of the project. She should have acted with much caution and exercised greater prudence, especially considering that she had just issued the suspension order to allow for the revision of the project's design parameters, coinciding closely with Jargon's submission of its request for mobilization fees.”

It also said that Candolada's act of signing the disbursement vouchers notwithstanding the project's suspension clearly demonstrates gross inexcusable negligence in the performance of her duties.

The 39-page decision dated Sept. 2, 2025 was written by Associate Justice Lorifel Lacap Pahimna with the concurrence of Associate Justices Michael Frederick L. Musngi and J. Ermin Ernest Louie R. Miguel.