In Ferrer v. People, the Supreme Court affirmed the conviction of a public official for violating Section 3(e) of the Anti-Graft and Corrupt Practices Act. The Court found that the official’s gross negligence in allowing construction without proper permits resulted in unwarranted benefits to a private company and detriment to public interest. This case underscores the importance of due diligence and adherence to legal requirements in public office, reinforcing accountability for actions that compromise public trust and the integrity of regulatory processes.

When Oversight Fails: The Intramuros Administrator’s Breach of Duty

The case revolves around Dominador C. Ferrer, Jr., then Administrator of the Intramuros Administration (IA), and his involvement in granting lease contracts and allowing construction activities to Offshore Construction and Development Company (OCDC) within the historic Intramuros district. The central legal question is whether Ferrer’s actions constituted a violation of Section 3 (e) of Republic Act No. (RA) 3019, the “Anti-Graft and Corrupt Practices Act,” which prohibits public officials from causing undue injury to the government or giving unwarranted benefits to private parties through manifest partiality, evident bad faith, or gross inexcusable negligence.

The prosecution argued that Ferrer gave unwarranted benefits to OCDC by awarding lease contracts without public bidding and by allowing the company to construct new structures without the necessary building permits or clearances. The prosecution presented evidence indicating that OCDC began construction on the Intramuros Walls despite the Technical Committee’s disapproval of their plans due to concerns about the Walls’ integrity and violations of heritage site conservation laws. The Committee discovered unauthorized construction, including the installation of air conditioning units through the Walls and the addition of concrete that damaged the structure. Victor B. Reyes, head of the Urban Planning and Community Development Division, testified that OCDC was not listed as a recipient of building permits and that Ferrer failed to sign a Notice of Violation addressed to OCDC.

Ferrer pleaded “not guilty,” contending that the lease contracts were entered into at the behest of then Department of Tourism (DoT) Secretary Gemma Cruz-Araneta, who assured him that she would also sign the contracts. He claimed that he issued a Notice of Demolition upon receiving reports of OCDC’s violations and that the required clearances under the Intramuros Charter were issued to OCDC. The Sandiganbayan (SB), however, found Ferrer guilty beyond reasonable doubt, sentencing him to imprisonment and perpetual disqualification from public office. The SB held that Ferrer exhibited gross inexcusable negligence in allowing the construction without the Technical Committee’s approval, thus giving OCDC an undue advantage.

The Supreme Court’s analysis hinged on the elements required to establish a violation of Section 3(e) of RA 3019. These elements are: (a) that the accused must be a public officer discharging administrative, judicial, or official functions; (b) that he acted with manifest partiality, evident bad faith, or inexcusable negligence; and (c) that his action caused any undue injury to any party, including the government, or gave any private party unwarranted benefits, advantage, or preference in the discharge of his functions. The Court found that all these elements were sufficiently proven in Ferrer’s case.

Ferrer, as the IA Administrator, was undoubtedly a public officer. The Court concluded that he acted with gross inexcusable negligence by knowingly allowing OCDC to commence construction on the Intramuros Walls without the required permits or clearances. The Court emphasized that even if a development clearance was belatedly granted to OCDC, the construction had already reached 75% completion by then. The Court highlighted the terms of the lease agreement, which stipulated that the Lessor would assist the Lessee in securing all required government permits and clearances, and give its conformity to such permits and clearances whenever necessary. This provision underscored Ferrer’s awareness of the requirements before any construction work could commence.

The Supreme Court rejected Ferrer’s argument that the allegations in the Information regarding the construction of “new” structures without permits were not proved during trial, asserting that even if the work involved was merely renovation, Ferrer still failed to ensure that the necessary permits and clearances were obtained beforehand. The Court quoted the definition of gross negligence from Coloma, Jr. v. Sandiganbayan, stating that it is:

negligence characterized by the want of even slight care, acting or omitting to act in a situation where there is a duty to act, not inadvertently but wilfully and intentionally with a conscious indifference to consequences in so far as other persons may be affected. It is the omission of that care which even inattentive and thoughtless men never fail to take on their own property.

The Court underscored that there was no reason to overturn the Sandiganbayan’s findings, stating:

[I]n appeals from the [SB], as in this case, only questions of law and not questions of fact may be raised. Issues brought to the Court on whether the prosecution was able to prove the guilt of the accused beyond reasonable doubt, whether the presumption of innocence was sufficiently debunked, whether or not conspiracy was satisfactorily established, or whether or not good faith was properly appreciated, are all, invariably, questions of fact. Hence, absent any of the recognized exceptions to the above-mentioned rule, the [SB’s] findings on the foregoing matters should be deemed as conclusive.

The Supreme Court’s decision underscores the severe consequences of neglecting one’s duty as a public officer. By allowing OCDC to proceed with construction without the necessary permits, Ferrer not only violated the law but also compromised the integrity of a historical site, undermining the public’s trust in government officials. This case serves as a reminder to all public servants to uphold their responsibilities with diligence and integrity, ensuring that all actions are in accordance with the law and in the best interest of the public.

FAQs

What was the key issue in this case?	The key issue was whether Dominador C. Ferrer, Jr., as Administrator of the Intramuros Administration, violated Section 3(e) of RA 3019 by giving unwarranted benefits to a private company through gross inexcusable negligence. This involved allowing construction without proper permits and clearances.
What is Section 3(e) of RA 3019?	Section 3(e) of RA 3019, the Anti-Graft and Corrupt Practices Act, prohibits public officials from causing undue injury to any party, including the government, or giving any private party unwarranted benefits, advantage, or preference through manifest partiality, evident bad faith, or gross inexcusable negligence.
What were the specific acts of negligence committed by Ferrer?	Ferrer’s negligence included allowing OCDC to begin construction on the Intramuros Walls without the required permits or clearances, ignoring the disapproval of the Technical Committee, and failing to act on reports of violations committed by OCDC.
What was the significance of the Technical Committee’s disapproval?	The Technical Committee’s disapproval was crucial because it highlighted that OCDC’s plans would impair the integrity of the Intramuros Walls and violate laws relating to the conservation of heritage sites. Ferrer’s decision to allow construction despite this disapproval demonstrated gross negligence.
What was the SB’s ruling in this case?	The Sandiganbayan found Ferrer guilty beyond reasonable doubt of violating Section 3(e) of RA 3019. He was sentenced to imprisonment for an indeterminate period of six years and one month, as minimum, to ten years, as maximum, with perpetual disqualification from public office.
What was Ferrer’s defense?	Ferrer argued that the lease contracts were entered into at the instance of the Department of Tourism Secretary, that he issued a Notice of Demolition upon receiving reports of violations, and that the required clearances were eventually issued to OCDC.
How did the Supreme Court define gross inexcusable negligence?	The Supreme Court defined gross negligence as “negligence characterized by the want of even slight care, acting or omitting to act in a situation where there is a duty to act, not inadvertently but wilfully and intentionally with a conscious indifference to consequences in so far as other persons may be affected.”
What is the practical implication of this ruling?	This ruling reinforces the accountability of public officials for their actions and decisions, particularly in ensuring compliance with legal requirements and protecting public interests. It emphasizes the importance of due diligence and adherence to regulatory processes in public office.

The Ferrer v. People case serves as a crucial reminder to public officials about the importance of upholding their duties with diligence and integrity. The ruling underscores the legal and ethical responsibilities that come with public office, emphasizing that negligence and disregard for regulatory processes can lead to severe consequences. This case is a call for stricter adherence to legal standards and a renewed commitment to protecting the public interest in all government actions.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Dominador C. Ferrer, Jr. v. People, G.R. No. 240209, June 10, 2019