Alleged pork barrel queen Janet Lim-Napoles and two former executives of now-defunct government-owned and controlled corporations were acquitted of graft and malversation charges involving P5 million in Priority Development Assistance Fund (PDAF) of an ex-lawmaker.

In a 98-page decision, the Sandiganbayan cited the prosecution's inability to substantiate the charges against Napoles, National Livelihood Development Council (NLDC) president Gondelina Amata, and NLDC assets management division chief Gregorio Buenaventura.

The three were accused of having a hand in the unlawful transfer of former La Union congressman Victor Francisco Ortega's P5 million PDAF in 2009 to the Social Development Program for Farmers Foundation Inc. (SDPFFI), a bogus non-governmental organization owned by Napoles.

The prosecution alleged that Amanda and Buenaventura entered into a memorandum of agreement with the SDPFFI -- the NLDC's project partner in the implementation of Ortega's livelihood project in his district -- notwithstanding its questionable credentials.

Of the P5 million, Napoles purportedly took hold of P4.8 million while Amata failed to account for the P150,000 utilized by NLDC as an administration cost.

According to the graft investigators, the PDAF failed to reach the intended beneficiaries because it was pocketed by the three along with their other co-accused.

The prosecution contended that the diversion of Ortega's pork barrel funds was tainted with manifest partiality, evident bad faith, and/or gross inexcusable negligence.

Further, probers also claimed that the NGO was non-existent -- citing documents that its office address was in Laguna instead of La Union -- or that the intended beneficiaries were fictional.

In its ruling, the Sandiganbayan, however, said that "the NGO may have moved or relocated to another office, and the named beneficiaries may have died, moved or relocated to another place making it challenging for the FIO to locate them."

"Verily, business entities can still exist, and business transactions can still be conducted, albeit illegitimately, even without a valid office address,” the verdict read.

"After a thorough review and evaluation of the documentary and testimonial evidence on record, the Court finds no sufficient evidence to hold accused Amata and Buenaventura criminally liable for violation of Section 3(e) of RA No. 3019," the Sandiganbayan ruled.

The same decision was also granted to Napoles.

"Verily, with the acquittal of the accused public officers, Amata and Buenaventura, there is no public officer whom the accused private individual, Napoles, could have conspired with," the anti-graft court said.

The Sandiganbayan also ruled that there was no documentary evidence to prove Napoles' ownership and control over the SDPFFI. 

Despite her acquittal, Napoles will remain behind bars for her other graft charges.