By pleading guilty to a lesser offense, the treasurer of Caraga town in Davao Oriental evaded a possible longer jail term in his graft case.

After his Sandiganbayan arraignment and before the prosecution could start presenting its evidence, treasurer Jaime D. Labasano filed a plea barganing agreement with the prosecution.

He changed his not guilty plea and, instead, pleaded guilty to a lesser of offense of violation of Section 6(b) in relation to Section 52(b) of Republic Act No. 8291, the law on social security and insurance benefits for government employees.

Section 6(b) of RA 8191 provides: "Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement thereunder, without being entitled thereto with the intent to defraud any members, any employer, the GSIS, or any third party, shall be punished by a fine of not less than five thousand pesos (P5,000) nor more than twenty thousand pesos (P20,000) or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at the discretion of the court."

The jail term for violation of Section 3(e) of RA 3019, the Anti-Graft and Corrupt Practices Act, for which Labasano was charged, is a minimum of six years and a maximum of 15 years with permanent disqualification to hold public office.

Labasano was indicted for failing to turn over and remit the Government Service Insurance System (GSIS) premiums and contributions of the officials and employees of the municipality amounting to P1,471,461.58.

The municipality and the GSIS then entered into a memorandum of agreement (MOA) and the amount was reduced by 50 percent with an interest of P1,931,062.66. The municipality agreed to pay the interest charge amounting to P965,531.33 and both Labasano and his co-accused, former Caraga Mayor William Sobiaco Duma-an, agreed to pay the remaining interest.

Labasano entered into a plea bargaining agreement with the prosecution. Plea bargaining is “a process of negotiation between the prosecution and defense in a criminal case whereby the accused – in return for leniency or a lighter sentence – agrees to plead guilty to a lesser offense.”

Approving the plea bargaining, the Sandiganbayan found Labasano guilty beyond reasonable doubt of the lesser offense of Section 6(b) in relation to Section 52(b) of Republic Act No. 8291. He was ordered to pay a fine of P5,000.

The anti-graft court noted "the payment made by Labasano in the amount of P965,531.33, representing the subject interest, which is considered full settlement of accused's civil liability."

Associate Justice Gener M. Gito wrote the 12-page decision with the concurrence of Fifth Division Chairperson Associate Justice Zaldy V. Trespass and Associate Justice Maryann E. Corpus-Manalac.