SC clears Laguna mayor of malversation charge

MANILA, Philippines (UPDATED) – The Supreme Court overturned on December 9, 2015 a Sandiganbayan ruling that found Sta Cruz, Laguna Mayor Domingo Panganiban guilty of malversation of public funds.

A copy of the decision was received by him and his lawyers on January 19, 2016.

The anti-graft court in November 2013 convicted Panganiban and ordered him imprisoned for a minimum of 10-12 years, to a maximum of 17-18 years.

Panganiban, through his lawyers Romulo Macalintal and Edgardo Carlo Vistan, appealed the Sandiganbayan ruling to the Supreme Court which raffled it off to the First Division. The High Court’s First Division said withholding of salaries of employees to liquidate a cash advance is an allowed practice under Commission on Audit (COA) rules.

The case stemmed from a cash advance of P500,000 made by Panganiban in May 2006 for a planned travel to South Australia from June to July 2006. This was to research and study the town’s sustainable environmental projects. 

The travel did not push through, however, prompting Panganiban to ask the accountant of Sta Cruz if he could liquidate his cash advance via salary deduction instead. The town’s accountant agreed.

When his term expired in 2007, Panganiban had a remaining unliquidated amount of P256,000. Asked by the COA to explain the unliquidated amount, he pointed to the salary deduction arrangement made with the town’s accountant.

By the time his term ended, Panganiban had paid in full the unliquidated amount of P256,000 through salary deductions.

The Ombudsman found probable cause to charge him in an information with malversation of public funds, after which, the Sandiganbayan found him guilty and sentenced him to imprisonment.

While his case was pending at the Sandiganbayan, Panganiban’s lawyers obtained the testimony of the COA regional director who admitted that the COA allows liquidation of cash advances through salary deduction or installment. The COA has not filed any case against any official who followed such arrangements.

The Supreme Court pointed out that the cash advance had been fully paid long before Panganiban’s arraignment before the Sandiganbayan. This ultimately negated any criminal intent on Panganiban’s part and translated to good faith, the High Court said. – Rappler.com

Editor’s Note: In a previous version of this story, we mistakenly used the photo of former DA and NAPC Secretary Domingo F. Panganiban. He has the same name as the Sta Cruz, Laguna mayor but they have different middle initials. The mayor’s full name is Domingo G. Panganiban, and the photo was taken from the Philippine Information Agency which did not specify any middle initial. We have taken down the photo.