Admin, criminal charges vs Gatchalian over 2015 Kentex fire, junked
By J.Lo

“I light of foregoing, Court resolves to deny both Petitions for Review. Accordingly… the Court affirms Decision dated 28 November 2016 ad Resolution dated 20 March 2017 of the Court of Appeals… while… it affirms joint resolution dated 13 December 2016 and Resolution dated 8 June 2017 in Sandiganbayan Criminal Cases,” the ruling dated Feb. 10, 2021 read.
Supreme Court has upheld dismissal of administrative and criminal charges against Valenzuela Mayor Rex Gatchalian and two other city officials over 2015 Kentex fire that resulted in death of 74 workers and injury to several others.
SC’s First Division dismissed consolidated petitions for review filed by the Office of the Ombudsman and the Department of the Interior and Local Government, and Office of the Special Prosecutor assailing resolutions and ruling clearing Gatchalian, Business Permit and Licensing Office officer-in-charge Renchi Padayao and BPLO officer IV Eduardo Carreon of charges connected to the fire.
The Ombudsman and DILG assailed Court of Appeals ruling that dismissed grave misconduct and gross neglect of duty charges against Gatchalian.
The Office of the Special Prosecutor, meanwhile, assailed decision of the Sandiganbayan Second Division that said it found no probable cause to order arrest and proceed with graft and reckless imprudence trial of Gatchalian, Padayao and Carreon.
In resolving petition on dismissal of grave misconduct and gross neglect of duty against Gatchalian, SC said city mayor “had no hand in issuance of business permits of Kentex and all other business establishments during time material to the case since matter has been delegated to BPLO.”
SC noted Departments of Trade and Industry, and of the Interior and Local Government issued joint memorandum circular on Aug. 6, 2010 that calls on local government units to reduce steps and processing time for business permits and allow them to issue “temporary permits” to give applicants time to comply with other requirements.
Sangguniang Panglungsod of Valenzuela then enacted Ordinance No. 62 allowing renewal of business permits prior to issuance of Fire Safety Inspection Certificate (FSIC) by Bureau of Fire Protection.
Under Business One-Stop Stop of BFP, the bureau is mandated to prescribe shortened procedure.
“Considering foregoing, it is beyond dispute that streamlined procedure for issuance of business permits allowed submission of FSIC within reasonable time for issuance of business permits,” the ruling read.
“Therefore, in issuing business permit to Kentex, City Government of Valenzuela merely followed procedure laid down in Joint Memorandum Circular No. 1, Ordinance 62 and other administrative issuance of BFP and DILG,” the SC stressed.
The Office of the Special Prosecutor accused Sandiganbayan of erring when it dismissed the case instead of proceeding to trial despite Ombudsman’s finding of probable cause against Gatchalian, Padayao and Carreon.
In the charge sheets ombudsman accused Gatchalian of conspiring with Padayao, Carreon and officials of the Valenzuela Bureau of Fire Protection (BFP) in issuing business permit to Kentex in 2014 and 2015, allegedly without ensuring that it had complied with fire safety measures.
On Section 3(e) of the Anti-Graft and Corrupt Practices Act, SC said “there was no showing that Kentex was given undue advantage, preference or any unwarranted benefits.”
SC agrees with Sandiganbayan that held in the assailed resolution that the second element on graft charges for causing undue injury to the government or giving unwarranted benefits to private party.
“It is not shown that with respect to Kentex, the LGU of Valenzuela deviated from procedures applied to other business establishments,” the ruling read.
SC also said undue injury in the context of Section 3(e) of RA 3019 is equated with actual damage in civil law and it is thus important that injury was produced by proximate cause.
In the case of Kentex fire, the SC noted that “the proximate cause of fire which resulted to the death and injury of the victims was stockpiling of 400 sacks or ten tins of Supercell Blowing Agent known as Azodicarbonamide, in an area not intended for such storage and adjacent to the welding activities near the stockpile.”
“There is no direct causal connection between issuance of the business permit and the fire which resulted to death and injury of the victims,” it added.
On the dismissal of reckless imprudence charge resulting to multiple homicide and multiple injuries charge, SC recalled it had held that there is no direct causal relation between death and physical injuries and alleged negligence of respondents in issuing business permits.
“In fine, Court is convinced Sandiganbayan correctly dismissed cases for lack of probable cause and CA correctly granted Mayor Gatchalian’s Petiton,” it said.
Associate Justice Rodil Zalameda penned the ruling. Then-Chief Justice Diosdado Peralta, Associate Justices Alfredo Benjamin Caguioa, Rosmari Carandang and Samuel Gaerlan concurred.
