The Office of the Ombudsman had alleged that Typoco caused undue injury to Ildefonso Macaraig, owner and proprietor of Crown I.B.M. Trading, when he refused to pay the businessman despite repeated demands.
Special prosecutor Dennis Villa-Ignacio recommended the filing of the case against the governor.
The Ombudsman said Typoco contracted Macaraig’s company in 2001 for 7,219 armchairs, 180 sets of gardening tools and 100 soil perforators, costing a total of P14, 999,980.
After the items had been delivered to the provincial government, Typoco said payment could not be made because funds were unavailable.
In his counter-affidavit, Typoco said it was Macaraig who initiated the transaction and insisted the delivery of the items although he was aware that there were no funds for the purchase.
Typoco said there was no intention to defraud Macaraig because the businessman knew the circumstances of the purchase and that there was no undue injury to either the government or any party.
In a 10-page resolution penned by Associate Justice Edilberto Sandoval, the Sandiganbayan’s second division said the allegations against Typoco did not constitute graft, thus the case must be dismissed.
The anti-graft court said Typoco could not be held criminally liable even if had refused to pay since the prosecution itself noted in the information that the transaction "was without corresponding appropriation from the provincial government of Camarines Norte."