575 Phil. 221
YNARES-SATIAGO, J.:
Peliño is the head of the Bureau of Internal Revenue (BIR) Large Taxpayers' Document Processing and Quality Assurance Division, while CUAKI appears on record as PELIÑO's son by one Alfonso D. Cuaki (Alfonso). CUAKI's birth certificate lists Peliño and Alfonso as his parents who were married in Manila on July 16, 1975.
- Eighteen (18) counts of perjury under Article 183 of the Revised Penal Code, for not making a true detailed Statement of Assets, Liabilities and Net Worth (SALN);[4]
- Republic Act No. 6713 (R.A. No. 6713), § 8 in relation to § 11 thereof, in regard to the filing of SALNs;[5]
- Dishonesty and grave misconduct under § 22, paragraphs (a) and (c), Rule XIV of the Omnibus Rules Implementing Book V of Executive Order No. 292, as amended by Civil Service Commission Circular No. 19, series of 1999; and,
- Republic Act No. 1379 (R.A. 1379), for alleged unexplained wealth.[6]
In relation to the charge of dishonesty and grave misconduct, apart from her failure to file true detailed SALNs as required, PELIÑO likewise omitted to declare in her Personal Data Sheet[8] that she has a son. On the contrary, she claims that she is single. CUAKI's Certificate of Live Birth[9] shows that PELIÑO and Alfonso are his parents, who were married on July 16, 1975, although subsequent verification would show that no marriage between the two ever took place.[10] PELIÑO herself is categorical in her claim that she never got married.[11]
- A house and lot in Pasig City acquired in 1986 (for P800,000.00) was not declared in her 1986-1988 SALNs, but only in her 1989-2003 SALNs;
- Two (2) lots in Quezon City (Transfer Certificate of Title, or TCT, Nos. 341855 (260 square meters, acquired on March 26, 1986) and 334240 (1,008 square meters, acquired on August 26, 1985) were not declared in her 1986 and 1987 SALNs. These two properties were sold to a certain Dante Gutierrez on April 13, 1988;
- An 84.5-square meter condominium unit (CCT 5188-R) with 12.5-square meter basement parking lot (CCT 5189-R) in San Juan (acquired for P800,000.00) allegedly bought by CUAKI in 1989 and registered in his name. The deed of sale indicates that CUAKI was of legal age at the time of the execution of the deed, yet he was actually only about three (3) years old on said date. This property was not declared in PELIÑO's 1989-2003 SALNs;
- A house and lot in Antipolo City worth (i.e. market value) P240,000 and with improvements amounting to P501,125.00, which was not declared in her 1989-2003 SALNs. Records further indicate that a loan with a 20-year payment plan was obtained from the GSIS for the purchase thereof, which loan was fully paid after only 12 years;
- A three-storey building and lot in Rosario, Cavite worth P788,400.00 acquired in 1992 but which was not declared in her 1992-2003 SALNs;
- A 578-square meter residential lot in Tanza, Cavite (TCT 408006) acquired in 1993, but not declared in her 1993-2003 SALNs;
- A 1.58 hectare lot in Naic, Cavite (TCT 874663) acquired in 1994, and not declared in her 1994-2003 SALNs;
- A 2.09 hectare lot in Naic, Cavite (TCT 874664) acquired in 1994, and not declared in her 1994-2003 SALNs;
- A 4,475-square meter house and lot in Tagaytay City acquired in 1994, but declared only in her 1999-2002 SALNs. Acquisition cost is P1,000,000.00, while construction cost of the house is P1,251,961.08;
- A 2.48 hectare agricultural land in Tanza, Cavite (TCT 871630) acquired in 1999, but not disclosed in her 1999-2003 SALNs;
- In her 1996 and subsequent SALNs, PELIÑO did not declare her interest as incorporator in Israel Armour Phils., Inc. a marketing company established in 1996 where she has a total of P500,000.00 paid up capital contribution;
- A 2002 model Isuzu Fuego vehicle (plate number XEW 396) acquired in 2002 for P740,000.00 but not declared in her SALN;
- A 2004 model Toyota RAV 4 vehicle worth P1,101,000.00 acquired for cash in the name of CUAKI, who was only nineteen (19) years old then. Moreover, a certification from the BIR shows that from 1993-2003, CUAKI did not file an income tax return, indicating that during that time he did not have any source of income to be able to afford the said vehicle;
- PELIÑO's 2000-2002 SALNs discloses a P800,000.00 loan liability, which was reduced substantially to P200,000.00 in her 2003 SALN. Meanwhile, in her 2003 SALN, PELIÑO's cash in bank increased from P100,000.00 to P108,240.50 only. Thus, while her annual salary during 2002 was only P236,874.00, she was able to discharge a P600,000.00 loan liability during that year;
- Records from the Bureau of Immigration show that respondents frequently traveled abroad (from 1993-2003), for the most part twice every year (except for the year 2001), to such destinations as Hongkong, Seoul, Bangkok, Osaka, Xiamen, Los Angeles and Taipei. "Conservative estimates" place their total incurred expenses (airfare only) at P528,488.44, which most likely PELIÑO paid considering that CUAKI had no income during those years;
- When computed, the respondents' total unexplained wealth amounts to approximately P10,891,009.11, which is the difference between their 1986-2004 accumulated wealth of P P13,144,599.71, and P2,253,590.60, which is PELIÑO's total lawful income for that period.
WHEREFORE, pursuant to Section 9, Rule III of Administrative Order No. 17, in relation to Section 24 of Republic Act No. 6770, and pending the conduct of appropriate disciplinary proceedings, respondent BEATRIZ SANCHEZ PELIÑO is hereby placed under preventive suspension for six (6) months, effective upon receipt hereof.PELIÑO filed an Urgent Motion to Lift Order of Preventive Suspension,[15] followed by a Supplemental Motion to Lift Order of Preventive Suspension[16] arguing thus:
The Honorable, the Commissioner, Bureau of Internal Revenue, Agham Road, Diliman, Quezon City is hereby furnished a copy of this Order for its implementation in accordance with law, with the directive to inform this Office of the action taken hereon.
The respondent is hereby directed to file her counter-affidavit and other controverting evidence to the said complaint, copy of which is hereto attached, within TEN (10) DAYS from receipt hereof in three (3) legible copies addressed to this Bureau x x x
SO ORDERED.[14]
Meanwhile, or on November 11, 2005, PELIÑO filed her counter-affidavit.[20] On December 9, 2005, the FIO filed its comment[21] on the motion to lift the order of preventive suspension and its supplement.
- The accusations against her are based on "conclusory and presumptive facts of unexplained wealth";
- The complaint did not specify a transaction or transactions from which her alleged "unexplained wealth" was derived;
- The alleged acts of misconduct do not have a direct relation to the performance of her official duties in the BIR;
- The basis for the charge against her - unexplained wealth - is a ground for criminal, not administrative, prosecution. Thus, no preventive suspension may be imposed as an incident thereto, since forfeiture proceedings under R.A. 1379 are criminal in nature;
- The evidence of her guilt is not strong, as the supporting documents do not reflect the true and accurate circumstances surrounding her acquisition of the properties concerned. While there are perjury charges, they constitute a matter for criminal prosecution; suspension in an administrative proceeding is therefore improper;
- There is no need to suspend her because the reasons that justify its exigency and necessity - tampering with evidence (all of which are already in the possession of the complainant) and influencing of witnesses (there is only one, the complainant graft investigation and prosecution officer) - do not exist. Besides, her superior, Deputy Commissioner Kim S. Jacinto-Henares, had issued a certification[17] attesting to the necessity of her presence at her office for the required work that must yet be done;
- She did not have any duty to report the properties registered in CUAKI's name because the latter is not her son, but a mere de facto guardian thereof. The law - § 8 of R.A. 6713 - requires disclosure only with respect to spouses and unmarried children under eighteen (18) years of age living with the declarant. To prove that CUAKI is not her son, she presents a sworn doctor's certificate[18] attesting to the fact that she had had a hysterectomy (specifically, the surgical removal of her uterus) on July 30, 1983, or two years before CUAKI was born.
- To further support her assertion that CUAKI is not her son, she presents the affidavit of one Carmencita Castillo,[19] the personal secretary of one Henry Go, Vice Chairman of Universal Robina Corporation, attesting to the fact that CUAKI is actually Go's son; that CUAKI was given up for adoption, but received financial support in the aggregate sum of P11,640,000.00 from 1985 up to 2000;
- Prescinding from the foregoing, all properties registered in CUAKI's name - the condominium unit in San Juan and the Toyota RAV 4 - were obtained from proceeds of the monetary support given by Go to PELIÑO for his alleged son;
- The other properties - the house and lot in Pasig City (Valle Verde V), house and lot in Tagaytay City, the Isuzu pickup - as well as the foreign travels were all purchased and taken using the money received (from Go) for CUAKI's regular financial support;
- The other properties - 3-storey building and lot in Rosario, Cavite, residential and agricultural lots in Tanza and Naic, Cavite, investment with Israel Armour Phils., Inc. - are being held by her in trust for the true owners thereof. Thus, there was no need to declare them in her SALN;
- Based on her detailed explanation as to the factual circumstances regarding the properties subject of the present inquiry, the prima facie presumption of illegal accumulation of wealth is controverted.
WHEREFORE, the petition is GRANTED. Accordingly, the Writ of Injunction issued on May 19, 2006, ENJOINING the Ombudsman, its agents and representatives, and the Commissioner of Internal Revenue from enforcing or implementing or otherwise giving effect to the Ombudsman's Order, dated August 31, 2005, placing petitioner on preventive suspension for six months, is made PERMANENT.Petitioners filed a motion for reconsideration but it was denied hence this petition raising the following issues for resolution:
SO ORDERED.[23]
In the meantime, it appears that on July 25, 2007, shortly after the appellate court rendered its January 26, 2007 Decision, the Ombudsman resumed proceedings and thereafter issued an Order requiring the parties to submit their respective position papers, after which the case shall be deemed submitted for decision. The FIO submitted its verified position paper on August 7, 2007, while PELIÑO submitted hers on September 14, 2007. On this account, respondent now seeks that the present petition be considered moot.I THE COURT OF APPEALS ACTED WITH GRAVE ABUSE OF DISCRETION IN NOT DISMISSING THE PETITION FILED WITH IT OUTRIGHTLY BECAUSE OF PREMATURITY.THE COURT OF APPEALS DECIDED A QUESTION OF SUBSTANCE WHICH IS NOT IN ACCORD WITH THE LAW AND PREVAILING JURISPRUDENCE.
II
(2) The Disclosure of Business Interests and Financial Connections shall contain information on any existing interests in, or any existing connections with, any business enterprises or entities, whether as proprietor, investor, promoter, partner, shareholder, officer, managing director, executive, creditor, lawyer, legal consultant or adviser, financial or business consultant, accountant, auditor, and the like, the names and addresses of the business enterprises or entities, the dates when such interests or connections were established, and such other details as will show the nature of the interests or connections.Pursuant to R.A. No. 3019, every public officer, after assuming office, and within the month of January of every other year thereafter, as well as upon the expiration of his term of office, or upon his resignation or separation from office, shall prepare and file a true detailed and sworn statement of assets and liabilities, including a statement of the amounts and sources of his income, the amounts of his personal and family expenses and the amount of income taxes paid for the next preceding calendar year.[27] A violation of this requirement proven in a proper administrative proceeding shall be sufficient cause for removal or dismissal of a public officer, even if no criminal prosecution is instituted against him.[28]
(1) The offender is a public officer or employee;Thus, an incumbent public officer or employee's failure or omission to include in his SALN or DBIFC property which is manifestly out of proportion to his salary and to his other lawful income and the income from legitimately acquired property, may give cause to his prosecution under R.A. No. 1379, for harboring unexplained wealth. The proceedings thereunder are civil in nature, although forfeiture of the property involved is considered to be in the nature of a penalty.[30]
(2) He must have acquired a considerable amount of money or property during his incumbency; and,
(3) Said amount is manifestly out of proportion to his salary as such public officer or employee and to his other lawful income and the income from legitimately acquired property.[29]
SECTION 24. Preventive Suspension.—The Ombudsman or his Deputy may preventively suspend any officer or employee under his authority pending an investigation, if in his judgment the evidence of guilt is strong, and (a) the charge against such officer or employee involves dishonesty, oppression or grave misconduct or neglect in the performance of duty; (b) the charges would warrant removal from the service; or (c) the respondent's continued stay in office may prejudice the case filed against him.In preventively suspending a public officer or employee pending investigation, the law does not require that all the four requirements should concur. What is required is merely a showing that the evidence of guilt is strong; and that any of the three (to wit: (a) the charge involves dishonesty, oppression or grave misconduct or neglect in the performance of duty; (b) the charge warrants removal from the service; or (c) the respondent's continued stay in office may prejudice the case filed against him), is present. The immediate issuance of a preventive suspension order is required to prevent the subject of the suspension from committing further irregularities. The same is in consonance with Section 15 of R.A. No. 6770 which exhorts the Ombudsman to give priority to complaints filed against high ranking government officials and/or those occupying supervisory positions, complaints involving grave offenses as well as complaints involving large sums of money and/or properties.[36]
The preventive suspension shall continue until the case is terminated by the Office of the Ombudsman but not more than six months, without pay, except when the delay in the disposition of the case by the Office of the Ombudsman is due to the fault, negligence or petition of the respondent, in which case the period of such delay shall not be counted in computing the period of suspension herein provided. (Emphasis and underscoring supplied)
Three-storey building and lot in Rosario, Cavite - she did not declare the same in her SALNs because she was a mere trustee of her siblings, who contributed money to purchase the lot and construct the building. PELIÑO admits though that she is one of the contributors, thus making her a co-owner of the same;[39]Going now to the issue of whether or not the evidence against PELIÑO is strong as would justify preventive suspension, PELIÑO insists, that
Residential lot in Tanza, Cavite (TCT 408006) - she claims she is a mere trustee of one Sesinanda Arayata, to whom she lent P50,000.00. The property is merely collateral that ensures the payment of the loan;
Lots in Naic, Cavite (TCTs 874663 and 874664) and agricultural land in Tanza, Cavite (TCT 871630) - she claims these lots were being held by her in trust for the real owners, whom she helped in one way or another.
Investment in Israel Armour Phils., Inc. - she alleges that Alfonso established said company for the purpose of selling Israeli-made bulletproof equipment, and he made her a mere nominee, "with no genuine interest in its financial success."
Preventive suspension is justified only (a) in cases of dishonesty or grave misconduct, which ultimately is not the charge against her; (b) where the evidence of her guilt is strong, which is hardly the case; and (c) where continued stay in office will prejudice the just, fair, and independent disposition of the administrative case, which in her case is like saying that lighting a candle causes global warming.[40]Quite the contrary, however, we have held time and again that what the law requires is merely that, first, the evidence of guilt must be strong; and second, that at least any one of the three circumstances - (1) that the charge involves dishonesty, oppression or grave misconduct or neglect in the performance of duty; (2) that the charge warrants removal from the service; or (3) that the respondent's continued stay in office may prejudice the case filed against him - is present.
In Concerned Taxpayer v. Doblada,[43] a sheriff of the regional trial court was dismissed from the service for violating § 7 of R.A. No. 3019 and § 8 of R.A. No. 6713 for his failure to declare a true and detailed SALN for a certain number of years during his stay in government. There were discrepancies, inconsistencies and omissions in his SALNs, consisting of properties and business interests acquired but which were declared in his SALNs only two or more years later.
- Three-storey building and lot in Rosario, Cavite. Although PELIÑO claims that she is a mere trustee of her siblings, who contributed money to purchase the lot and construct the building, she admits[42] that she is one of the contributors, thus making her a co-owner of the property. She should have declared the extent of her interest therein in her SALNs for the years 1992 to 2003;
- Residential lot in Tanza, Cavite (TCT 408006). It appears that PELIÑO obtained title by foreclosing on the property, based upon her admission that the owner, one Sesinanda Arayata, owed her money. If the property constituted mere collateral, then it would have been unnecessary to place the same in PELIÑO's name; a mortgage deed would have sufficed. Nonetheless, PELIÑO should have declared this property in her SALNs for the years 1992 to 2003;
- 1.58 hectare lot in Naic, Cavite (TCT 874663) and 2.09 hectare lot in Naic, Cavite (TCT 874664). Acquired in 1994, but not declared in her 1994-2003 SALNs, PELIÑO claims she holds these properties in trust for the heirs of the late Quintin Javier, yet offers no trust document or the written statement or explanation of any one of the heirs to attest to the truth of her claim.
- P500,000 Investment in Israel Armour Phils., Inc. If PELIÑO was a mere nominee of Alfonso in said company, there should be a document or some other evidence to show this fact. Instead, PELIÑO failed to show any; there is therefore no justification in law for her failure to disclose this interest in her SALNs since her acquisition of the same in 1996. As far as the law is concerned, PELIÑO is the declared owner of the investment.
SECTION 8. Statements and Disclosure. -- Public officials and employees have an obligation to accomplish and submit declarations under oath of, and the public has the right to know, their assets, liabilities, net worth and financial and business interests including those of their spouses and of unmarried children under eighteen (18) years of age living in their households.[6] An Act Declaring Forfeiture In Favor Of The State of Any Property Found To Have Been Unlawfully Acquired By Any Public Officer Or Employee And Providing For The Proceedings Therefor.
(a) Statements of Assets and Liabilities and Financial Disclosure. -- All public officials and employees, except those who serve in an honorary capacity, laborers and casual or temporary workers, shall file under oath their Statement of Assets, Liabilities and Net Worth and a Disclosure of Business Interests and Financial Connections and those of their spouses and unmarried children under eighteen (18) years of age living in their households.
The two documents shall contain information on the following:
(a) real property, its improvements, acquisition costs, assessed value and current fair market value;
(b) personal property and acquisition cost;
(c) all other assets such as investments, cash on hand or in banks, stocks, bonds, and the like;
(d) liabilities, and;
(e) all business interests and financial connections.
The documents must be filed:
(a) within thirty (30) days after assumption of office;
(b) on or before April 30, of every year thereafter; and
(c) within thirty (30) days after separation from the service.
All public officials and employees required under this section to file the aforestated documents shall also execute, within thirty (30) days from the date of their assumption of office, the necessary authority in favor of the Ombudsman to obtain from all appropriate government agencies, including the Bureau of Internal Revenue, such documents as may show their assets, liabilities, net worth, and also their business interests and financial connections in previous years, including, if possible, the year when they first assumed any office in the Government.
Husband and wife who are both public officials or employees may file the required statements jointly or separately.
The Statements of Assets, Liabilities and Net Worth and the Disclosure of Business Interests and Financial Connections shall be filed by:
(1) Constitutional and national elective officials, with the national office of the Ombudsman;
(2) Senators and Congressmen, with the Secretaries of the Senate and the House of Representatives, respectively; Justices, with the Clerk of Court of the Supreme Court; Judges, with the Court Administrator; and all national executive officials with the Office of the President.
(3) Regional and local officials and employees, with the Deputy Ombudsman in their respective regions;
(4) Officers of the armed forces from the rank of colonel or naval captain, with the Office of the President, and those below said ranks, with the Deputy Ombudsman in their respective regions; and
(5) All other public officials and employees, defined in Republic Act No. 3019, as amended, with the Civil Service Commission.
(b) Identification and disclosure of relatives. -- It shall be the duty of every public official or employee to identify and disclose, to the best of his knowledge and information, his relatives in the Government in the form, manner and frequency prescribed by the Civil Service Commission.
(c) Accessibility of documents. -- (1) Any and all statements filed under this Act, shall be made available for inspection at reasonable hours.
(2) Such statements shall be made available for copying or reproduction after ten (10) working days from the time they are filed as required by law.
(3) Any person requesting a copy of a statement shall be required to pay a reasonable fee to cover the cost of reproduction and mailing of such statement, as well as the cost of certification.
(4) Any statement filed under this Act shall be available to the public for a period of ten (10) years after receipt of the statement. After such period, the statement may be destroyed unless needed in an ongoing investigation.
(d) Prohibited acts. -- It shall be unlawful for any person to obtain or use any statement filed under this Act for:
(a) any purpose contrary to morals or public policy; or
(b) any commercial purpose other than by news and communications media for dissemination to the general public.
SECTION 11. Penalties. -- (a) Any public official or employee, regardless of whether or not he holds office or employment in a casual, temporary, holdover, permanent or regular capacity, committing any violation of this Act shall be punished with a fine not exceeding the equivalent of six (6) months' salary or suspension not exceeding one (1) year, or removal depending on the gravity of the offense after due notice and hearing by the appropriate body or agency.f the violation is punishable by a heavier penalty under another law, he shall be prosecuted under the latter statute. Violations of Sections 7, 8 or 9 of this Act shall be punishable with imprisonment not exceeding five (5) years, or a fine not exceeding five thousand pesos (P5,000), or both, and, in the discretion of the court of competent jurisdiction, disqualification to hold public office.
(b) Any violation hereof proven in a proper administrative proceeding shall be sufficient cause for removal or dismissal of a public official or employee, even if no criminal prosecution is instituted against him.
(c) Private individuals who participate in conspiracy as co-principals, accomplices or accessories, with public officials or employees, in violation of this Act, shall be subject to the same penal liabilities as the public officials or employees and shall be tried jointly with them.
(d) The official or employee concerned may bring an action against any person who obtains or uses a report for any purpose prohibited by Section 8 (d) of this Act. The Court in which such action is brought may assess against such person a penalty in any amount not to exceed twenty-five thousand pesos (P25,000).f another sanction hereunder or under any other law is heavier, the latter shall apply.