Graft court clears former Isabela State U president in Fairview property case

MANILA, Philippines – The anti-graft court Sandiganbayan on Thursday, March 12, acquitted a former president of Isabela State University (ISU) of charges linked to a property purchase in Quezon City more than a decade ago.

The court’s 2nd division cleared former ISU president Aleth Misola Mamauag of graft in connection with the university’s 2012 acquisition of the property in Fairview, Quezon City, valued at P6.2 million. She was charged with violating the Anti-Graft and Corrupt Practices Act in 2025.

Prosecutors had accused Mamauag of causing undue injury to the state-run university by proceeding with the purchase even though the university’s Board of Regents had authorized a budget of only P4.5 million for the property.

They said she approved the payment of P5.1 million despite learning that the property had an encumbrance or adverse claim.

But in its decision, the Sandiganbayan ruled that the prosecution failed to establish Mamauag’s criminal liability beyond reasonable doubt and ordered her acquittal. It said neither did prosecutors show Mamauag acted with bad faith.

The Sandiganbayan, in the 23-page resolution signed by presiding Justice Geraldine Faith Econg, Associate Justice Edgardo Caldona and Associate Justice Gener Gito, noted that none of the witnesses presented by the prosecution testified to any wrongdoing or negligence by Mamauag.

The evidence presented, it said, showed that the ISU Board of Regents approved a budget of P4.5 million for the purchase, that Mamauag later signed the contract to sell involving a different property, and that the state university paid P5.1 million in three tranches.

Records also showed that the property was never transferred to the university.

The Sandiganbayan, however, said these did not directly establish bad faith, manifest partiality or gross negligence on the part of Mamauag even as it noted that the transaction was subject to safeguards, including the authority of the Board of Regents to reject the agreement or question the university president over the purchase.

“However, none of the witnesses even dared to question the accused Mamauag. This means that the questioned actions, good or bad, are to be credited to the group. A board resolution is a group decision,” the Sandiganbayan pointed out.

The ruling also noted that Mamauag herself initiated legal action to rescind the deal. In 2014, she filed a case before the Regional Trial Court in Echague, Isabela to cancel the purchase agreement, with then-solicitor general Florin Hilbay serving as counsel.

“The Court recognizes that the earnest effort of accused Mamauag to recover the sum of money on behalf of the University negates bad faith,” the Sandiganbayan said. 

In the ruling, the Sandiganbayan granted defense lawyer’s demurrer to evidence and lifted the hold departure order previously issued against her. A demurrer to evidence challenges the sufficiency of the prosecution’s case, and when granted after the prosecution rests, results in an acquittal that is no longer subject to appeal. – Rappler.com