OCAMPO III. VS.

PEOPLE
G.R Nos. 156547-51. February 4, 2008

FACTS:

The Department of Budget and Management released the amount of Php 100 Million for
the support of the local government unit of the province of Tarlac. However, petitioner Ocampo,
governor of Tarlac, loaned out more than P 56.6 million in which he contracted with Lingkod
Tarlac Foundation, Inc.. thus, it was the subject of 25 criminal charges against the petitioner.

The Sandiganbayan convicted the petitioner of the crime of malversation of public funds.
However, the petitioner contended that the loan was private in character since it was a loan
contracted with the Taralc Foundation.

ISSUE:

Whether the amount loaned out was private in nature.

RULING:

Yes, the loan was private in nature because Art. 1953 of the New Civil Code provides
that “a person who receives a loan of money or any other fungible thing acquires the ownership
thereof, and is bound to pay the creditor an equal amount of the same kind and quality.”
The fact that the petitioner-Governor contracted the loan, the public fund changed its
nature to private character, thus it is not malversation which is the subject of this case, instead it
must be a simple collection of money suit against the petitioner in case of non payment .
therefore, the petitioner is acquitted for the crime of malversation.