QUEZON CITY – The Sandiganbayan has acquitted former Veterans Federation of the Philippines President Bonifacio De Gracia of two counts of violation of the Anti-Graft and Corrupt Practices Act.

The decision stemmed from the complaint filed by VFP before the Office of the Ombudsman against De Gracia for entering into six lease contracts with IBEX Communications & Technologies Inc. for properties of the federation in November 2016 to May 2018.

The VFP alleged De Gracia signed the contracts involving properties in Taguig City without authority from the VFP Executive Board and without approval of the Defense Secretary.

In a 37-page decision promulgated on Tuesday, the Sandiganbayan First Division said the prosecution failed to prove his guilt beyond reasonable doubt.

The Sandiganbayan decision acquitting former Veterans Federation of the Philippines President Bonifacio De Gracia of two counts of violation of the Anti-Graft and Corrupt Practices Act. Paige Javier, ABS-CBN News

"We find no evidence on record that would show that the accused was motivated by evident bad faith or manifest partiality when he executed the contracts with IBEX, or that he gave unwarranted preference, benefits or advantage to the latter," it said.

"We also find that there is not enough evidence to prove that the contracts entered into were manifestly or grossly disadvantageous to the government," the decision further read.

The prosecution accused De Gracia of giving unwarranted benefits to IBEX Communications & Technologies Inc. for supposedly approving six lease contracts at rates that were "far below fair market value" of the subject properties. 

  - 4,283 square meter property dated December 22,2017
  - 10,000 square meter property dated May 17,2018
  - 12,000 square meter property dated December 22,2017
  - 11,260 square meter property dated November 22,2016
  - 740 square meter property dated March 31,2017
  - 5,240 square meter property which was undated

A technical working group from the House of Representatives said there were 38 lease contracts with rental rates ranging from P25.00 to P210.00.

However, according to the Taguig City Assessor, the prevailing schedule of fair market value that applies to VFP-IC is at P2,500 per square meter. 

Prosecutors echoed the complaint of the VP that the contracts were not approved by the Defense Secretary and did not pass through the VFP Executive Board.

De Gracia argued that there are approved rental rates for the VP Industrial Complex, there is an approved standard lease contract and before he signed a deal, and it passes through the Executive Board for approval.

The Sandiganbayan said the records do not show previous lease contracts were approved by the Defense Secretary but were allowed to continue until expiration. 

It also pointed out that the prosecution failed to prove that De Gracia alone decided to enter into the said lease contracts and that he helped in preparing the deals. 

"While the prosecution was able to establish that De Gracia was the President of VFP, he signed, the subject lease contracts, and executed the lease in favor of IBEX, it was unable to establish that he gave unwarranted benefits, advantage, or preference to IBEX and he acted with evident bad faith, manifest partiality, and/or gross inexcusable negligence," the Sandiganbayan said. 

The anti-graft court also said there was insufficient evidence to prove that the contracts were disadvantageous to government because of the supposed low rental rates. 

"Conviction must rest no less than on hard evidence showing that the accused, with moral certainty, is guilty of the crime charged. Short of these constitutional mandate and statutory safeguard, that is, a person is presumed innocent until the contrary is proved, the Court is then left without discretion and is duty bound to render a judgment of acquittal," it added. 

With the acquittal, the Sandiganbayan ordered the lifting of the hold departure order against De Garcia and the release of the cash bonds posted by him.