The Sandiganbayan has convicted a senior official of the Development Bank of the Philippines (DBP) of graft for approving the wrong valuation of a foreclosed property in Cabuyao, Laguna in 2013.

Sentenced to a jail term ranging from six to 10 years with perpetual disqualification to hold public office and forfeiture of this retirement and gratuity benefits was Romeo A. Aguilar, DBP’s senior assistance vice president and head of the Remedial Management Department.

The anti-graft court’s decision directed Aguilar to pay the DBP P43,452,000 which should earn interest at the rate of six percent per annum computed from the finality of the decision until fully paid.

Aguilar’s graft charge stemmed from the approval of P56,269,000 as appraised value and P45,817,766.25 as maximum bid price for the foreclosure sale of the real properties consisting of lots located in Cabuyao, Laguna registered in the name of Milestone Paper Products, Inc. (MPPI).

State prosecutors said that the correct and adjusted appraised value and maximum bid price are more or less P116,896,000 and P89,300,000, respectively.

By failing to approve the correct amounts, prosecutors said that Aguilar gave unwarranted benefits, advantage, and preference to JRK Holdings Corporation (JRK), the winning bidder of the foreclosed real properties, in the amount of P43,452,000.

In its ruling, the anti-graft court said that Aguilar indeed understated the bid price offered by the DBP for the Cabuyao real properties even though he was aware of the market value of the properties.

The court chastised Aguilar for his failure to exercise extraordinary diligence.

It said: "Indeed, JRK made a killing at the auction sale, and DBP got the raw end because accused Aguilar, DBP's steward, failed egregiously. This is precisely the lax attitude that Republic Act No. 3019 seeks to repress; this is, in every way, the cavalier disposition that a public officer cannot display and that the Court cannot countenance."

It also said that Aguilar handed the Cabuyao properties to JRK "on a silver platter."

It added: "Considering that JRK manifested beforehand its interest in the MPPI's assets, he (Aguilar) should have been on guard against JRK's bid. Instead, he raised the odds in JRK's favor by understating DBP's bid. Consequently, DBP's bid became kaput. Under these circumstances, the 'unwarranted benefit' was given by accused Aguilar to the private party with 'some unethical interest,' which in turn, is consistent with the spirit of R.A. No. 3019," the Anti-Graft and Corrupt Practices Act.

The 72-page decision was written by Associate Justice Kevin Narce B. Vivero with the concurrence of Associate Justices Sarah Jane T. Fernandez and Lord A. Villanueva.