G.R. No. A.M. No. P-05-1989. October 20, 2005.
REPORT ON THE FINANCIAL AUDIT CONDUCTED AT THE MCTC-MABALACAT, PAMPANGA.

FACTS

This administrative case arose from a financial audit of the Municipal Circuit Trial Court (MCTC) of Mabalacat, Pampanga. The audit covered two periods: the accountability of then Clerk of Court Teresita C. Basa from March 1985 to January 2003, and that of acting Clerk of Court Mercedes C. Catap from January to September 2003. For Ms. Basa, the audit revealed a total unaccounted shortage of ₱171,428.46 in Judiciary Development Fund (JDF) remittances and ₱49,908 in Clerk of Court General Fund (CCGF) remittances. She also incurred significant delays in her periodic remittances. A prior surprise cash count in 2002 had already found a shortage in her accountabilities.
For Ms. Catap, a cash count in October 2003 revealed a temporary shortage of ₱19,087, which she later produced and deposited, citing misplacement. She also incurred delays in remittances, explaining that trips to the bank were time-consuming due to road construction. The Office of the Court Administrator (OCA) recommended actions against both.

ISSUE

Whether retired Clerk of Court Teresita C. Basa and acting Clerk of Court Mercedes C. Catap are administratively liable for the shortages and delays in the remittance of court collections.

RULING

Yes, but with differing degrees of liability and corresponding penalties. The Court found Teresita C. Basa guilty of Grave Misconduct. The legal logic is anchored on the fiduciary nature of a clerk of court’s duty as an custodian of court funds. Clerks of court are essential officers next in rank to judges and are considered treasurers, accountants, and managers of court funds. Their conduct must be beyond reproach and characterized by utmost integrity. Ms. Basa’s consistent failure over nearly 18 years to remit collections on time, coupled with her failure to account for substantial shortages or provide a satisfactory explanation despite directives from the Court, constitutes gross dishonesty and grave misconduct. Her actions demonstrated a willful violation of circulars and a betrayal of the high degree of trust reposed in her position.
For Mercedes C. Catap, the Court had previously issued a Resolution admonishing her. While she incurred delays and initially failed to present funds upon demand, she promptly produced and deposited the amount the following day, accounted for all receipts, and had no other pending accountabilities. Her explanation for the delays, while not justifying them, was considered in the lighter penalty of admonition with a warning.
Consequently, the Court modified the OCA’s recommended penalty for Ms. Basa. Instead of a fine of ₱10,000, she was found guilty of grave misconduct and fined an amount equivalent to six months’ salary, to be deducted from her leave credits. The shortages in the JDF and CCGF were also ordered deducted from her retirement benefits. The ruling reinforces the principle that unjustified delay in the remittance of court collections, especially when resulting in an unaccounted shortage, is a serious administrative offense that erodes public trust in the judiciary.