It took the Office of the Ombudsman more than seven years from 2018 to resolve the graft complaints and file them in court against 12 officials of the Home Development Mutual Fund (HDMF).

Thus, due to inordinate delay that violated the accused’s right to speedy disposition of cases, the Sandiganbayan dismissed the graft charges filed against them and a private individual.

In a resolution issued last Jan. 28, the anti-graft court granted their motions to dismiss the charges, lifted their hold departure orders, and ordered the release of the bail they posted.

While the court found that the graft charges were sufficient in form and substance, it stressed that it cannot turn a blind eye to the "substantial" inordinate delay of the prosecution in handling the case.

"The Court finds that the proceedings were attended by substantial delay. A total of seven years, five months, and eight days, or approximately 89 months, elapsed from the filing of the First Complaint on May 16, 2018 until the filing of the Information on Oct. 24, 2025," the court said.

Cleared of graft charges were HDMF Department Manager III Flordelis B. Menzon, Assistant Department Manager Paulino C. Talacay, Assistant Department Manager - Operations Jose E. Clarin, Chief of General Accounting Division Leonora P. Gatchalian, Budget Officer III Ma. Carmel P. Cayobit, Loans and Credit Investigator III Ronsard P. Granali, Loans and Credit Investigator III Rizalito T. Loreche, Loans and Credit Investigator III Mark Anthony G. Faraon, Loans and Credit Investigator III Nelson T. Custodio, Mortgage Loan Specialist Raquel R. Pomida, Records Officer Emily B. Pretencio, Member Service Officer I Emelito T. Naynos, and private individual Ray F. Zialcita.

The graft charges arose from the 47 housing loans involving P33.1 million from HDMF given to Zialcita from 2007 to 2009 under the names of alleged dummy borrowers.

The accused HDMF officials argued that the processing, evaluation, and approval of the housing loans underwent several levels of review within the Housing Loan Division and the Operations Group of the HDMF before any disbursement was made.

They added that loans were secured by real estate mortgages and governed by funding agreements that provided contractual remedies in the event of default.

The Sandiganbayan ruled: "In view of the Ombudsman's inordinate delay and the absence of sufficient justification, the accused-movants' constitutional right to speedy disposition of cases was plainly violated. Where such inordinate delay in the preliminary investigation remains unjustified, dismissal is warranted."

The 35-page resolution was written by Associate Justice Gener M. Gito with the concurrence of Associate Justices Zaldy V. Trespeses and Maryann E. Corpus-Manalac.