BIR intel officer acquitted of graft charge on appeal

THE Sandiganbayan has reversed and set aside its November 7, 2023 decision that affirmed the conviction of Bureau of Internal Revenue (BIR) – Special Investigation Division intelligence officer Francis Mercado on one count of graft.

In its 17-page resolution issued September 6, 2024, the anti-graft courts First Division granted the defendant’s motion for reconsideration saying a second look on the evidence on record showed the prosecution failed to establish Mercado’s guilt beyond reasonable doubt.

“A careful review of the prosecution’s evidence, as well as the Court’s record, made this Court entertain reasonable doubt as to Mercado’s guilt,” it said.

“The record is bereft of evidence to show that Mercado demanded, requested, 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,” it ruled.

Associate Justice Juliet M. Manalo-San Gaspar penned the ruling with Associate Justices Marita Theresa V. Mendoza-Arcega and Geraldine Faith A. Econg concurring.

Based on the information filed in 2006 by the Office of the Deputy Ombudsman for Visayas, Mercado was accused of connivance with BIR Special Investigation Division chief Bonifacio Ybañez and late revenue officer Edgar Palgan in allegedly soliciting or demanding and receiving cash amounting to P60,000 from complainant Leonila Montero, owner of Alona Tropical Beach Resort in Panglao Island, Bohol

Montero said it was Palgan who first got in touch with her in March 2005 through phone calls and text messages and instructed her to submit sales receipts for 2004 and January to March 2005 to the BIR Region 7 office in Cebu City.

When she went there with the required documents, she said she was brought by Palgan to the office of Ybañez where Mercado was also present.

A second meeting on May 24, 2005 was also called by Palgan in Ayala Center, Cebu City where she was informed of her tax assessments. This was followed by an official demand from the BIR for her supposed liability of around P200,000.

Montero said she haggled hard and convinced the defendants to accept P60,000 in exchange for immunity from