The Sandiganbayan has found former Narvacan, Ilocos Sur mayor Zuriel Zaragosa guilty of graft, but acquitted his father, Edgardo Zaragosa and two others who were charged along with him, for embezzling P81 million in tobacco excise tax intended for municipal farmers in 2016.

In a 47-page ruling promulgated on 30 June, the anti-graft court took note of the prosecution’s findings that “convincingly and satisfactorily” established that Zuriel is the sole culpable for violating Section 3(e) of the Anti-Graft and Corrupt Practices Act (RA 3019).

He was slapped with up to 10 years in prison and permanently disqualified from holding public office.

Zurriel was acquitted, however, of a malversation charge, along with Edgardo and ex-municipal accountant Melody Cadacio and ex-research assistant Mario Cabinte, for prosecution’s failure to establish beyond a reasonable doubt that they “acted with criminal intent and furtive design, with a view towards the fruition of conspiracy.”

The case, stemmed from a complaint filed by former Ilocos Sur governor Luis “Chavit” Singson with the Ombudsman, alleged that the Zaragozas misappropriated P81 million intended for the Federation of Farmers of Narvacan, Ilocos Sur (FFNI). The sum was sourced from the tobacco excise tax funds collected under RA 7171 and was supposed to fund projects for tobacco farmers.

The law was designed to extend support to tobacco farmers in recognition of their contribution to the industry that generates a significant income for the government. It provides monetary aid and developmental projects, which shall be implemented by the local government concerned.

Court’s records showed, however, that the funds were not used for their intended purpose; rather, they were delivered to Zuriel’s residence in exchange for kickbacks.

Accused-turned-witness Constante Cabitac, the former president of the federation, told the court that he was forced to encash the P81-million check more than ten times in exchange for a grocery allowance. The check was issued in his name. He testified that he personally handed over the entire amount to Zuriel, accosted by Cadacio and Cabinte.

Edgardo, who also served as municipal mayor and former National Tobacco Administration chief, denied wrongdoing and dismissed the charges against them as politically motivated, citing their political rift with the Singsons, one of the dynastic families who had long controlled Narvacan. 

The prosecution flagged glaring irregularities in the disbursement, such as the checks being made payable directly to Cabitac instead of to the FFNI, in violation of rules set forth by the Commission on Audit. They also pointed out that the checks were executed and encashed on the same day. 

“The court thus gives full credence to Cabitac’s testimony because the same is not based on humor, or hearsay, or second-hand stories, but on first-hand personal knowledge as a party to this contrived scheme who at the time, was also facing criminal charges precisely for the same fraudulent transactions,” the Sandiganbayan said.

In convicting Zuriel, the anti-graft court ruled in favor of the prosecution that the former mayor caused undue injury to the government when he received the money from Cabitac.

“The undue injury suffered by the government and the farmer beneficiaries consists in the fact that the former was denied of its mandate to discharge its responsbility to extend adequate or full assistance be it financial or through other means to intended beneficiaries,” the Sandiganbayan pointed out.

“This effectively deprived the municipal government of Narvacan of the opportunity to implement meaningful programs which would have redounded to the benefit of the farmer beneficiaries,” the decision further reads.