Sandiganbayan Jurisdiction Over Local Officials: The Salary Grade 27 Rule Explained

The Sandiganbayan is a special court that tries graft and corruption cases against public officials. But which officials fall under its jurisdiction? A Supreme Court decision provides a clear answer: it is the official classification of the position—not the actual salary received—that determines whether the Sandiganbayan, rather than regular courts, hears the case.

This distinction matters for mayors, vice-mayors, and other local executives, particularly those in financially constrained municipalities where actual pay may fall below the official salary grade for the position.

The Legal Framework: Salary Grade 27 as the Threshold

Republic Act No. 7975 amended the law governing the Sandiganbayan's jurisdiction over public officials. Under Section 4 of R.A. 7975, the Sandiganbayan exercises original jurisdiction over cases involving violations of the Anti-Graft and Corrupt Practices Act (R.A. 3019) and other offenses committed by public officials, including those classified under Salary Grade 27 and higher.

The Salary Grade 27 threshold traces its basis to Republic Act No. 6758, the Compensation and Position Classification Act of 1989, which standardized the salary system for government positions. The Department of Budget and Management (DBM) classifies positions through the Index of Occupational Services, Position Titles and Salary Grades.

For local officials, Section 444(d) of the Local Government Code (R.A. 7160) provides that municipal mayors shall receive a minimum monthly compensation corresponding to Salary Grade 27.

The Layus Case: Jurisdiction by Position, Not Pay

Mayor Celia T. Layus of Claveria, Cagayan, was charged before the Sandiganbayan with estafa through falsification of public documents and violations of the Anti-Graft and Corrupt Practices Act.

She challenged the Sandiganbayan's jurisdiction, arguing that her actual monthly salary of ₱11,441 placed her at Salary Grade 25—below the SG 27 threshold. She contended that Section 444(d) of the Local Government Code merely set a minimum compensation, not a definitive classification for jurisdictional purposes.

The Supreme Court disagreed. The Court held that municipal mayors are assigned Salary Grade 27 in the DBM's Index of Occupational Services, and this classification—not the actual salary received—governs jurisdiction.

As the Court stated: "The fact that LAYUS is getting an amount less than that prescribed for SG 27 is entirely irrelevant for purposes of determining the jurisdiction of the Sandiganbayan."

The Rodrigo Precedent and Suspension Pendente Lite

The Court relied on the earlier ruling in Rodrigo v. Sandiganbayan, which established that municipal mayors, regardless of their municipality's income class, fall under Sandiganbayan jurisdiction because their position is classified as Salary Grade 27.

The Court also upheld the Sandiganbayan's order suspending Mayor Layus pendente lite (pending litigation). Under Section 13 of R.A. 3019, suspension is mandatory once a valid information is filed against a public official for graft-related offenses. The suspension is preventive—it ensures the accused cannot use their office to obstruct justice while the case is ongoing.

Practical Implications for Local Officials

The Layus ruling provides important guidance for local government executives:

• Poverty of the municipality is not a defense. Even if a fifth-class municipality cannot pay the full SG 27 rate, the mayor's position is still classified at SG 27 for jurisdictional purposes.
• The filing of a valid information triggers suspension. Once charges are filed in the Sandiganbayan, suspension is practically automatic.
• Jurisdictional challenges rarely succeed. Arguing that actual salary falls below SG 27 will not defeat Sandiganbayan jurisdiction.

Practical Takeaways

• Check the position classification, not the paycheck. Sandiganbayan jurisdiction over local officials depends on the official salary grade of the position, not the actual compensation received.
• Suspension follows indictment. Under Section 13 of R.A. 3019, public officials charged in the Sandiganbayan face mandatory suspension pendente lite.
• Financial capacity is irrelevant. A municipality's inability to pay the full SG 27 rate does not remove its officials from Sandiganbayan jurisdiction.
• Seek early legal advice. Local officials facing graft complaints should consult counsel immediately to understand their options and prepare for potential proceedings.

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