The Sandiganbayan has set aside its earlier decision that convicted former mayor Zuriel S. Zaragoza of Narvacan, Ilocor Sur of graft but found him guilty of frauds against the public treasury.

In a resolution issued last Dec. 12, the anti-graft court partially granted Zaragoza's motion for reconsideration and set aside his graft conviction on the ground of reasonable doubt.

Instead of graft, he was found guilty of violation of Article 213, paragraph 1 of the Revised Penal Code, as amended, on frauds against the public treasury.

With the ruling, the court sentenced Zaragoza to imprisonment of two years and four months to four years, two months and 21 days of prision correccional, and ordered to pay a fine of P500,000 with subsidiary imprisonment in case of insolvency.

Last June 30, Zaragoza was convicted for the misuse of the P81 million share of the municipality from its local excise taxes on locally-manufactured Virginia-type cigarettes, which was intended for the benefit of the Federation of Famers of Narvacan, Ilocos Sur (FFNII).

For graft, he was sentenced to six to 10 years imprisonment with perpetual disqualification from holding public office.

However, Zaragoza was acquitted of the crime of malversation of public funds under Article 217 of the Revised Penal Code together with his father, Edgardo Zaragoza -- also a former mayor of the municipality -- municipal accountant Melody Cadacio, and education research assistant Mario G. Cabinte.

Edgardo, Cadacio, and Cabinte were likewise acquitted of graft for the failure of the prosecution to prove their guilt beyond reasonable doubt.

In his motion for reconsideration on his graft conviction, Zaragoza asked the Sandiganbayan to reverse the decision and to re-raffle the case to another division.

His plea for a re-raffle was denied. The court said: "Verily, the Court finds no compelling reason to recuse from ruling on the instant motion."

It pointed out that the court had been "tolerant" and has "consciously chosen to ignore" the statements Zaragoza made about their reported disinterestedness.

The court warned: "In order to rein in on the propensity of the counsel for accused-movant to wantonly make remarks that tend to disrespect and undermine its reputation, the Court cautions the use of intemperate language in the guise of advocating for the cause of their clients."

Upon review of its decision, the court ruled that the prosecution failed to properly prove the element of undue injury in Zaragoza’s graft case, and mere agreement to defraud the government is enough for conviction of frauds against the public treasury.

Thus, the court ruled: "The Court therefore finds accused-movant liable for the offense of frauds against the public treasury and similar offenses and his criminal liability finds basis in the variance doctrine. This doctrine provides that a felony is necessarily included in the crime charged when some of the latter's essential elements constitute those of the former."

The 30-page resolution was signed by Presiding Justice Geraldine Faith A. Econg and Associate Justices Edgardo M. Caldona and Arthur O. Malabaguio.