Mayor X and his City Administrator, Y, are political buddies who assumed their respective offices in 2010. Sometime in January 2012, Y proposed to Mayor X the entry into a ₱5,000,000.00 loan agreement with ABC Foundation, a non-stock and non-profit organization in which the two had a long-standing personal involvement. The loan agreement was duly executed in the same year but was never authorized and approved by the Sangguniang Panlungsod. It was further found that the same constituted a fraudulent scheme to defraud the City Government.
Meanwhile. Mayor X won another term during the May 2013 Elections and Y continued on as his City Administrator. A year after, or in May 2014, administrative charges for grave misconduct, serious dishonesty, and conduct prejudicial to the best interest of the service were filed against them before the Office of the Ombudsman. In defense, Mayor X argued that his subsequent reelection in May 2013 absolved him from any administrative liability for any alleged anomalous activity during his first term in office.
Y raised the same defense of condonation, having been retained by Mayor X as City Administrator for a second term. On December 10, 2015, the Ombudsman rendered its ruling in the case, finding both Mayor X and Y administratively liable. Citing the Supreme Court’s Decision in Carpio-Morales v. Court of Appeals (G.R. Nos. 217126-27), which was initially promulgated on November 10, 2015, the Ombudsman rejected their defense of condonation...
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