In a 10-page resolution penned by Justice Rodolfo Palatao of its fourth division, the anti-graft court also absolved Philippine National Police legal division chief Rodolfo Vejano of the same charges for similar reasons.
The ruling, which was concurred by Justices Gregory Ong and Ma. Cristina Cortez-Estrada, said prosecutors failed to establish that the March 1999 deal between the PNP and Mahogany Medical and Pharmaceutical Supplies Inc. (MMPSI) was invalid.
"We find nothing in the prosecution’s evidence which proves beyond reasonable doubt that Puno and Vejano acted with manifest partiality, evident bad faith or gross inexcusable negligence," they said.
Camp Crame’s resident Commission on Audit representative Romeo Pulido said the terms of the deal were "satisfactory" and complied with all the requirements.
"Thus it would appear that it was not really a question on the alleged monopolistic nature of the (agreement)," the court said, referring to the testimony of retired Maj. Gen. Ramon Montaño, who raised a howl over MMPSI’s alleged drug-testing monopoly.
The former presidential consultant on police affairs said the PNP-MMPSI contract was obviously disadvantageous to the government because only MMPSI was given the right to administer drug tests to all licensed gun-holders, including police officers and security guards.
The Sandiganbayan said the only issue that remains unresolved was Pulido’s complaint that there was no "revenue-sharing" between the PNP and MMPSI, considering the pharmaceutical supply firm earns some P130 million annually. — Delon Porcalla