A former Bureau of Internal Revenue (BIR) officer, accused of extorting P60,000 from a Bohol resort owner, was acquitted after the Sandiganbayan overturned its earlier decision and reversed his graft conviction.

BIR intelligence officer 3 Francis Mercado was previously found guilty and convicted of up to eight years for violating Section 3(b) of the Republic Act 3019 or the Anti-Graft and Corrupt Practices Act. He was likewise perpetually barred from holding public office.

This decision by the Cebu City Regional Trial Court Branch 17, rendered on 6 October 2022, was later upheld by the Sandiganbayan Special First Division in October of the previous year.

Mercado faced allegations of conspiring with BIR Special Investigation Division chief Bonifacio Ybañez and revenue officer Edgar Palgan to extort P60,000 from Alona Tropical Beach Resort owner Leonila Montero. In exchange, they promised to reduce her pending tax liability of P200,000.

Montero paid the bribe during an entrapment operation on 5 August 2005, which led to the arrest of Ybañez and Palgan. She was assured that the payment would prevent any further BIR investigation or surveillance.

In overturning its earlier decision, the Sandiganbayan ruled that the prosecution had failed to establish a conspiracy involving Mercado, as the case against him heavily relied on Montero's testimony, which lacked clarity regarding Mercado's role in the alleged crime.

"Unfortunately, other than the lone and bare testimony of Montero that Mercado conspired with Ybañez and Palgan, the prosecution failed to present any other additional testimonial, documentary or object evidence to substantiate its claim," the anti-graft court said. "Montero even admitted that she did not preserve the alleged messages which could prove Mercado's participation."

Moreover, the Sandiganbayan ruled that they could not simply convict Mercado based on the calling card with his bank account written on the back, in which Montero purportedly instructed to deposit half of the payment.

"To this court's mind, while the reason of Mercado may be flimsy, the same is not implausible. The mere act of giving business card is not punishable per se. Nullum crimen sine lege. What remains uncontroverted was the fact that he was processing his visa application in Manila while the entrapment was happening in Cebu," it said.

All told, the Sandiganbayan ruled that the prosecution's findings are bereft of evidence to show that Mercado demanded or received "any gift, present, share, percentage, or benefit for himself or for any other person, in connection with any contract or transaction between the government and any other party, wherein he, in an official capacity, has to intervene under the law."