In a 32-page resolution, the Sandiganbayan said there was no factual basis to support the conclusion of a special auditing team of the Commission on Audit (COA) that Candao and the former officer-in-charge of the ARMM executive secretary’s office, Abas Candao, were liable for malversation of public funds.
In filing the charges, the Office of the Ombudsman said it found prima facie case for two counts of malversation of public funds against Zacaria, one count against Abas, and two against Datu Lami Mama, former assistant secretary for operations of the DENR-ARMM in Cotabato City. Evidence against Mama still has to be presented before the Sandiganbayan.
The case arose from an anonymous letter-complaint dated March 9, 1993 addressed to then President Fidel Ramos, alleging that certain ARMM managers of the Department of Environment and Natural Resources (DENR) were involved in acts of graft and corruption. The letter was signed by the "Concerned Employees of DENR-ARMM."
Upon the request of then DENR Secretary Angel Alcala and the Office of the Ombudsman for Mindanao, the COA conducted an audit of the financial transactions and operations of DENR-ARMM.
The special audit team presented an 11-page audit report which concluded that the collection of environment/management and other forest charges supposedly amounting P74,415,668.12 were not deposited to the regional treasury in violation of Section 69 of Presidential Decree 1445.
The auditing team recommended the filing of administrative and criminal charges for violation of Article 217 of the Revised Penal Code against Zacaria, Abas, Mama, Thelma Langco, of the DENR-ARMM provincial environment and natural resources office (PENRO) in Maguindanao; Ali Sultan, of the Lanao del Sur PENRO; Bashir Ibrahim, of the Lanao del Sur PENRO; Israel Haron, disbursing officer II of the governor’s office; and Bartolome Corpus, officer-in-charge of the management division of the governor’s office. But charges were later formally filed only against the Candaos and Mama.