MANILA — The Sandiganbayan has set aside its earlier graft conviction against former Narvacan, Ilocos Sur mayor Zuriel S. Zaragoza, but found him guilty of fraud against the public treasury.
In a resolution dated Dec. 12, the anti-graft court partially granted Zaragoza’s motion for reconsideration, ruling that there was reasonable doubt to sustain his graft conviction.
However, the court held him criminally liable for violation of Article 213, paragraph 1 of the Revised Penal Code, as amended, which penalizes fraud against the public treasury.
Zaragoza was sentenced to imprisonment ranging from two years and four months to four years, two months, and 21 days of prision correccional, and was ordered to pay a P500,000 fine, with subsidiary imprisonment in case of insolvency.
The case stemmed from the alleged misuse of Narvacan’s P81-million share from local excise taxes on locally manufactured Virginia-type cigarettes, which was intended to benefit the Federation of Farmers of Narvacan, Ilocos Sur (FFNII).
In its June 30 ruling, the Sandiganbayan had convicted Zaragoza of graft and imposed a prison term of six to 10 years, along with perpetual disqualification from public office.
Zaragoza, however, was acquitted of malversation of public funds under Article 217 of the Revised Penal Code, along with his father, former mayor Edgardo Zaragoza, municipal accountant Melody Cadacio, and education research assistant Mario G. Cabinte.
The three co-accused were also cleared of graft after the court found that the prosecution failed to establish their guilt beyond a reasonable doubt.
In seeking reconsideration, Zaragoza asked the court to reverse its ruling and re-raffle the case to another division, but the Sandiganbayan denied the request, saying there was no compelling reason for the justices to recuse themselves.
The court also cautioned Zaragoza’s counsel against using intemperate language, warning that remarks perceived as disrespectful or undermining the court’s integrity would not be tolerated.
Upon review, the Sandiganbayan ruled that prosecutors failed to prove the element of undue injury required for a graft conviction. It stressed that proof of an agreement to defraud the government was sufficient to establish liability for fraud against the public treasury.
Citing the variance doctrine, the court said Zaragoza could still be found guilty of fraud, as the offense is necessarily included in the crime originally charged.
The 30-page resolution was signed by Presiding Justice Geraldine Faith A. Econg and Associate Justices Edgardo M. Caldona and Arthur O. Malabaguio.