24/12/2025
Presumption of Malversation!
PRESUMPTION OF MALVERSATION ARISES WHEN PUBLIC FUNDS WERE SPENT FOR PERSONAL USE—SUPREME COURT
The Supreme Court (SC) ruled that a presumption of malversation arises when a government official uses public funds for personal purposes or for purposes contrary to those intended by law.
In a 14-page ruling authored by Associate Justice Ricardo Rosario, the SC's First Division affirmed the criminal conviction of former Loreto, Agusan del Sur mayor Herminio Casal Reyes for malversation of public funds, sentencing him to a penalty of 6-10 years in prison and ordering him to pay a fine of P1.6 million.
In 2003, Reyes approved the grant of a loan to the municipal officials to purchase motorcycles to be used exclusively for official purposes. They sourced out the funds by realigning the budget that was originally set aside for the construction of the municipal building but which remained idle due to the suspension of the construction.
The municipal government, through Reyes, other Sangguniang Bayan (SB) members, the municipal secretary, and the budget officer, then entered into a Memorandum of Agreement (MOA) for the diversion of funds allocated for the construction of the municipal building. The SB also enacted three resolutions for the said endeavor.
After the passage of the aforesaid resolutions, the Office of the Ombudsman for Mindanao received an anonymous complaint, reporting the misappropriation of the amount of P1.6 million that was allocated for the construction of the municipal building.
The Ombudsman-Mindanao subsequently referred the matter to the COA for audit investigation. After the probe, the COA recommended the filing of charges against Reyes and several other SB members and municipal officials for violation of Section 3(e), Republic Act No. 3019, and for malversation of public funds.
The Sandiganbayan found Reyes and other accused guilty beyond reasonable doubt of graft and malversation, prompting them to elevate the case before the Supreme Court.
In affirming Reyes' conviction for malversation, the high court found that all four elements of malversation are present. It cited Article 217 of the Revised Penal Code, which provides that malversation of public funds is committed by the public official who misappropriates public funds for their own personal use or allows any other person to take such public funds for the latter's personal use.
The highest bench noted that even though the purpose of the loans to the municipal officials, as stated in the MOA was for them to purchase a service vehicle for public use or official purposes; the fact remains that Reyes is accountable for said funds as he failed to account for the same.
Meanwhile, as to the graft cases, Reyes and other accused were acquitted after finding that they acted in good faith and without manifest partiality in making the transaction and processes.
