G.R. No. 112584 - DOMINGO INGCO, ERNESTO MAGBOO AND HERMINIO ALCASID, VS. SANDIGANBAYAN.

Ruling

Accordingly, on 21 July 1993, an information [7] was filed with the Sandiganbayan for violation of Section 3(e), in relation to Section 3(g), of R.A. 3019, as amended, against herein petitioners. The inculpatory statements in the information read: That on or about September 22, 1977 and March 27, 1978, and for some time prior or subsequent thereto, in the City of Manila, Philippines, and within the jurisdiction of this Honorable Court, the above named accused, Domingo Ingco, being then the Senior Vice-President of the Philippine National Bank, a government-owned bank, and hence a public officer, while in the performance of his official functions, taking advantage of his position and conspiring and confederating with Ernesto Magboo and Herminio Alcasid, both private individuals, being then the Chairman of the Board of Directors and the President and General Manager, respectively, of Cresta Monte Shipping Corporation, a private corporation engaged in the maritime industry and duly organized and registered in accordance with Philippine law, did then and there willfully, unlawfully, criminally and with evident bad faith and manifest partiality cause undue injury to the Government in the following manner: accused Domingo Ingco favorably recommended the approval of the applications for loan of Cresta Monte Shipping Corporation in the amount of US$5.91 Million and US$7.5 Million and the subsequent release of such loans notwithstanding the fact that Cresta Monte had a capitalization of only P1 Million; that the loans were guaranteed only by the National Investment Development Corporation, a subsidiary of the Philippine National Bank; that the joint and several signatures of accused Ernesto Magboo and Herminio Alcasid and their spouses were not given in violation of the terms and conditions of the guaranty loan by NIDC; that a project feasibility study was not conducted to evaluate the commercial viability of the proposed undertaking covered by the aforesaid loans; that the Credit Rating submitted by the PNB Credit Department contained adverse comments; and that the collaterals offered by Cresta Monte Shipping Corporation were deficient, thereby allowing the Government to enter into a manifestly and grossly disadvantageous contract, and as a result of the grant of said loans and their subsequent release in complete disregard of the aforementioned factors which should have justified their disapproval, undue injury and damage was consequently caused to the Government by the default of Cresta Monte Shipping Corporation in the payment of its loan obligations, thereby leaving an unpaid balance of P511.437 Million as of March 31, 1986. [8] Petitioners moved for the quashal [9] of the information on the ground, inter alia, that the facts alleged in the information did not constitute an offense under the invoked law, and that the offense charged, in any case, had already prescribed. Expectedly, the motion was opposed by the prosecution. On 07 October 1993, the