Sandiganbayan Jurisdiction Over Graft Cases: Municipal Mayors and Salary Grade 27

The Sandiganbayan is the special court that hears graft cases against public officials. But not every public official accused of corruption goes before it. The law draws the line based on the official's salary grade. A 2000 Supreme Court ruling explains this boundary clearly, and it remains the controlling guide for determining which court hears an anti-graft case against a municipal mayor.

In Llorente, Jr. v. Sandiganbayan (G.R. Nos. 122297-98, January 19, 2000), the Court settled a recurring question: does the Sandiganbayan keep jurisdiction over a municipal mayor accused of violating the Anti-Graft and Corrupt Practices Act, or should the case go to the Regional Trial Court?

The Facts of the Case

Crescente Y. Llorente, Jr. served as municipal mayor of Sindangan, Zamboanga del Norte, elected in 1988 and again in 1992. In 1993, the Office of the Special Prosecutor filed two criminal cases against him before the Sandiganbayan.

The first case charged him with violating Section 3(e) of Republic Act No. 3019 for allegedly seizing 930 sawn knockdown wooden boxes without a search warrant or receipt, causing damage to the owner. The second case charged him under Section 3(f) for refusing to issue a mayor's permit to an ice plant and resawmill without justification, allegedly to give undue advantage to similar businesses.

While the cases were pending, Congress enacted Republic Act No. 7975 in 1995, amending the Sandiganbayan's jurisdiction. The new law gave the Sandiganbayan exclusive original jurisdiction over graft cases where the accused holds a position classified as Salary Grade 27 or higher. Llorente moved to transfer his cases to the Regional Trial Court, arguing that a municipal mayor's salary was below Grade 27, so the Sandiganbayan no longer had jurisdiction.

The Issue

The sole question was whether Republic Act No. 7975 divested the Sandiganbayan of jurisdiction over graft cases against municipal mayors whose actual salary fell below the Grade 27 threshold.

The Ruling

The Supreme Court ruled against Llorente and upheld the Sandiganbayan's jurisdiction. The Court rejected the argument that the salary actually received by an official determines his salary grade. Instead, the Court held that it is the official's grade that determines the salary, not the other way around.

To determine whether an official falls within the Sandiganbayan's exclusive jurisdiction, the Court said reference should be made to Republic Act No. 6758 (the Compensation and Position Classification Act of 1989) and the Index of Occupational Services, Position Titles and Salary Grades. An official's grade is not a matter of proof but a matter of law, which courts must take judicial notice of.

Applying this rule, the Court noted that Section 444(d) of the Local Government Code provides that a municipal mayor shall receive a minimum monthly compensation corresponding to Salary Grade 27 under Republic Act No. 6758. Both the 1989 and 1997 versions of the Index of Occupational Services listed the municipal mayor under Salary Grade 27.

Since Llorente was a municipal mayor at the time of the alleged offenses, his position was classified as Grade 27. The Sandiganbayan therefore had exclusive jurisdiction over his graft cases, regardless of what he actually received in salary.

Why the Ruling Matters

This case clarifies an important distinction in Philippine criminal procedure. Jurisdiction over graft cases does not depend on an official's actual pay. It depends on the official's position classification under the law. A municipal mayor holds a Grade 27 position by law, so graft cases against mayors belong to the Sandiganbayan.

The ruling also confirms that courts will take judicial notice of salary grades prescribed by law and by the Index of Occupational Services. Litigants cannot introduce evidence to show that a particular mayor was actually paid less, because the classification is fixed by statute, not by payroll records.

Practical Takeaways

• Position, not pay, determines jurisdiction. A municipal mayor's graft case goes to the Sandiganbayan because the Local Government Code fixes the mayor's position at Salary Grade 27, even if the actual salary received is lower.
• Salary grade is a matter of law. Courts take judicial notice of the salary grades listed in Republic Act No. 6758 and the Index of Occupational Services. No proof of actual salary is required.
• The rule applies to other officials too. The same reasoning applies to any public official whose position is classified at Grade 27 or higher under the law.
• Check the classification first. When deciding where to file or transfer a graft case, verify the accused's position title against the Index of Occupational Services rather than relying on actual compensation.
• Republic Act No. 8249 later refined the rules. The Court noted that Congress enacted this law in 1997 redefining the Sandiganbayan's jurisdiction, so subsequent cases should be checked against the current version of the law.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.