QUEZON CITY – The Sandiganbayan has convicted Evelyn de Leon, former president of Philippine Social Development Foundation, Inc. (PSFDI) for two counts of graft and two counts of malversation of public funds for defrauding government.

The conviction carries a penalty of 29 to 39 years of imprisonment, including a fine of P3.5 million which is subject to 6% interest per annum until the conviction is final.

PSFDI was one of the non-government organizations (NGO) linked to convicted "pork barrel scam queen" Janet Lim Napoles. 

It was also the project partner in the use of the priority development assistance fund (PDAF) of Cagayan de Oro Representative Rufus Rodriguez.

In 2022, cases were filed against the accused involving P1.5 million disbursed in November 2007 and P2 million disbursed in February 2008 from the PDAF of Rep. Rodriguez.

The anti-graft court's Seventh Division in a 35-page decision found De Leon guilty of the Anti-Graft and Corrupt Practices Act and for malversation of P3.5 million of public funds.

"De Leon signed each and every liquidation document to substantiate massive government expenditures with the knowledge that they were utterly false. De Leon knew she was defrauding the government, whether for her own personal benefit or not. She intended to defraud the government with every signature she affixed to divert funds intended for imagined “marginalized farmers” into PSDFl, the NGO which De Leon represented," it said.

De Leon's co-accused, former Technology Resource Center director general Antonio Ortiz, remains at large. Because of this, only de Leon underwent trial.

"De Leon received unwarranted benefit and preference from accused Ortiz when her patently irregular liquidation documents were accepted as sufficient to validate a prior disbursement and to justify another disbursement on the basis thereof," the Seventh Division added.

The Sandiganbayan said de Leon failed to present proof contrary to prosecution evidence that her signatures were on the liquidation reports.

"The reports of disbursement showed no attempt to itemize what were contained in the starter sets; no attempt to indicate the purchase price that somehow added up to PHP 33,265 per set; no attempt to identify the supplier. The same was true with the delivery reports and certificates of acceptance," the anti-graft court said.

"Even worse, none of the named beneficiaries who were sent letters of confirmation by the COA [Commission on Audit] confirmed receipt of the items purportedly delivered to them. Some named beneficiaries denies having affixed the signatures opposite their names in the list of beneficiaries or having received any grant from Cong. Rodriguez or PSDFI," it added.

The Sandiganbayan noted that prosecution witness and whistleblower Benhur Luy bared that the names of the beneficiaries were copied from records in the office of JLN Corp.

He added that the signatures were affixed by JLN Corp. employees and not by the actual persons.

Luy testified there was no implementation of livelihood projects by PSDFI even if funds were released to it. Lastly, he said that he, de Leon, among others prepared the liquidation documents.

The Sandiganbayan said de Leon did not present evidence in her defense to counter Luy's testimony.

"Lending credence to Luy’s testimony that both Ortiz and De Leon were part of the hub in the PDAF scheme, it was clearly established that De Leon performed her part which she has not denied," the anti-graft court said.

In her testimony, state auditor Joan Agnes Alfafaras said the PDAF of Rep. Rodriguez was released to the TRC.

The TRC said it transferred P1.35 million and P1.8 million to PSDFI since a total of 10% was retained by the TRC for management fee and learning materials cost.

The anti-graft court said that the prosecution established De Leon conspired with Ortiz to channel public funds to non-existent projects.

"PSDFI, acting through its president, De Leon, was allowed by Ortiz, through the disbursement vouchers, to take and misappropriate funds under his watch and to use them for PSDFLs own benefit. Through their concerted acts, the aggregate amount of PHP 3.5 million under the two SAROs was misappropriated from the government when no project implementation was fully liquidated as to its intended purpose," the Sandiganbayan said.

"It has been established that PSDFI was set up as a corporation for the illegal purpose of siphoning government funds. De Leon acted on behalf of PSFDI in all the transactions crucial for the transfer of funds to PSDFI, and is thus criminally liable therefore," it added.

Graft Investigation and Prosecution Officer Atty. Ted Emmanuel Lorenzo said their special team of investigators recommended the filing of criminal charges against Rodriguez, Napoles and TRC officials. But in 2020, the Office of the Ombudsman ordered the filing of charges only against De Leon and Ortiz.

The decision was penned by Associate Justice Ma. Theresa Dolores C. Gomez-Estoesta and Associate Justices Zaldy V. Trespeses and Georgina D. Hidalgo concurred.