Sandiganbayan affirms graft conviction of BIR intel officer

The Sandiganbayan has sustained the ruling of a Cebu City court convicting a Bureau of Internal Revenue (BIR) intelligence officer of graft charges for demanding P60,000 from a Bohol resort owner in exchange for reducing the resort's tax dues.

In a 19-page decision, the anti-graft court ruled that it was clear that the accused, Francis Mercado, called the owner of the resort,  Leonila Montero, to secure a bargain tax due amount pegged at P60,000.

Of the said amount, Montero agreed to only pay P30,000 since her husband at that time was in the hospital.

"Mercado approved the amount of P60,000.00 after bargaining with Montero. He also gave his calling card with his bank account number written on the back, instructing Montero to deposit half of the amount," the Sandiganbayan said in a November 7 ruling.

Mercado's acts, the court added, "are more than sufficient to show his participation in the crime charged, even though it was only Palgan and Ybañez who were present during the entrapment on August 2, 2005."

Bonifacio Ybañez and Edgar Palgan were the Chief of the Special Investigation Division and Revenue Officer of Revenue Region No. 13 in Cebu City, respectively.

According to the Sandiganbayan, Mercado had acknowledged ownership of the calling card and the bank details inscribed on its back, but claimed that it was only given to Montero "inadvertently."

Mercado, the court said, also claimed that the card "was supposed to be given to his brother who will help him out financially for his United States trip."

"To the Court's mind, if the accused-appellant was able to testify on this matter, why did he not offer an explanation or his 'alibi' against Montero's allegation of his presence in the July 26, 2005 meeting? Because of this, Montero's version remained uncontroverted," the Sandiganbayan added.

The Sandiganbayan argued that BIR intelligence official Mercado’s explanation was was too flimsy in that he had to write down his account number in a calling card if it was meant for his brother.

It also pointed out that the money requested by Mercado "was clearly for himself, Palgan, and Ybañez" because '[h]e gave Montero instructions for the money to be deposited to his savings account."

The court also said Montero also testified that Mercado and Palgan assured her that once she pays the amount they requested, she will be spared from any surveillance because they work at the Intelligence Office Division.

"It is evident from the foregoing testimony that money is in exchange for not conducting further surveillance in the business of Montero, and that Mercado, Palgan, and Ybañez had the right to intervene with such assessments under the law because they were working at the Intelligence Office Division. From the foregoing discussion, the Court finds and so holds that accused-appellant Mercado is guilty of violating Sec. 3(b) of RA 3019," the Sandiganbayan said.

"he Court affirms the court a quo’s Amended Decision. Wherefore, in light of all the foregoing, the appeal is hereby denied. The Amended Decision of the Regional Trial Court of Cebu City, Branch 17, dated October 6, 2022, convicting accused-appellant Francis V. Mercado of violation of Section 3(b) of RA 3019, as amended, is hereby affirmed in toto," the anti-graft court added.

The Cebu City Regional Trial Court sentenced Mercado to six to eight years in prison and perpetually disqualified him from holding public office and other accessory penalties as provided by law. —KBK, GMA Integrated News