CA modifies Ombudsman’s ruling on Devanadera case

MANILA, Philippines - Former justice secretary Agnes Devanadera was given a lower penalty for receiving questionable allowances when she was government corporate counsel in 2007 after the Court of Appeals (CA) modified the 2010 and   2012 decisions of the Office of the Ombudsman finding her guilty of grave misconduct.

The CA ruled that Devanadera had committed only simple misconduct, simple neglect of duty and conduct prejudicial to the best interest of the service.

“There was error on the part of the ombudsman in finding petitioner guilty of grave misconduct,” read the CA decision.

“For misconduct considered as grave, there must be willful intent on the part of the public officer to disregard established rules.” 

The CA said in place of the penalty of suspension of one year without pay, Devanadera is ordered to pay a fine equivalent to her salary as government corporate counsel for six  months.

“She is ordered to restitute to the Office of the Government Corporate Counsel trust liability account the total amount of P760,000,” read the CA decision.

The CA said Devanadera and her staff received the amount “in good faith,” although the issuance of the allowances was illegal.

Records showed the allowances were subjected to taxes and that the Commission on Audit (COA) “thought the petitioner’s actions were permissible under the law,” the CA added.

The CA said Devanadera and her staff were not the only ones to receive attorney’s fees by virtue of the Special Assessment Fees paid by the GSIS.

“Consequently, it cannot be said that there were flagrant and palpable breach of duty on the part of the petitioner when she ordered the reimbursement of the purchase of such materials,” read the CA decision.

The case arose from an agreement that Devanadera’s office entered into with the Government Service Insurance System (GSIS) to handle the extrajudicial foreclosure of delinquent real estate loans.

Under the agreement, the Office of the Chief Government Corporate Counsel (OGCC) during Devanadera’s watch would get special assessment fees for its help.

The Office of the Ombudsman said Devanadera’s office earned P700,000 in attorney’s fees for the transaction.

It found Devanadera and her former staff – her former executive assistant Rolando Faller, lawyer Jose Ma. Capili, and Divina Gracia Cruz – guilty of grave misconduct, dishonesty and conduct prejudicial to the best interest of the service.

The penalty imposed on them was dismissal from the service, including accessory penalties of cancellation of eligibility, forfeiture of retirement benefits and perpetual disqualification for reemployment in the government service.

Devanadera sought reconsideration, but the anti-graft agency denied her motion, and she sought redress with the CA.

Associate Justice Romeo Barza wrote the decision.

Associate Justices Hakim Abdulwahid and Ramon Cruz concurred.