A.M. No. 2010-21-SC September 30, 2014
Re: Anonymous Letter-Complaint on the Alleged Involvement and for Engaging in the Business of Lending Money at Usurious Rates of Interest of Ms. Dolores T. Lopez, SC Chief Judicial Staff Officer, and Mr. Fernando M. Montalvo, SC Supervising Judicial Staff Officer, Checks Disbursement Division, Fiscal Management and Budget Office.

FACTS

An undated anonymous letter-complaint was filed with the Supreme Court’s Complaints and Investigation Division (CID), Office of Administrative Services (OAS). It alleged that respondents Dolores T. Lopez, a Chief Judicial Staff Officer, and Fernando M. Montalvo, a Supervising Judicial Staff Officer, both from the Checks Disbursement Division of the Fiscal Management and Budget Office (FMBO), were engaged in profitable money-lending with usurious interest, targeting low-salaried Court employees like drivers and janitorial staff. The complaint claimed the lending was facilitated with the help of FMBO personnel, enticing employees to pledge forthcoming benefits at a discounted rate, and that around 300 ATM cards were held as collateral. The OAS directed the respondents to comment. Lopez, in her memorandum, neither denied nor admitted the allegations but challenged the OAS to let her confront the anonymous complainant. Montalvo denied the charges, calling the complaint malicious. During clarificatory hearings, Lopez admitted she had lent money to about 20 personnel from the janitorial agency and low-ranking Court employees (e.g., utility workers, messengers) for over two years, with loan amounts ranging from ₱500 to ₱2,000. She acknowledged receiving ₱10 for every ₱100 borrowed, which she claimed was voluntarily given by borrowers and not considered interest, and that she held 10-20 ATM cards as collateral. She absolved Montalvo and other staff from involvement. Montalvo maintained he only lent money to close acquaintances as a friendly gesture. A second anonymous complaint alleged Lopez continued her lending activities during the pendency of the first complaint. The OAS recommended dismissing the complaint against Montalvo for lack of merit but recommended suspending Lopez for 30 days for lending money with interest and directed her to cease such activities.

ISSUE

Whether the respondents, as court personnel, are administratively liable for engaging in money-lending activities, particularly for charging usurious interest, as alleged in the anonymous complaint.

RULING

The Court dismissed the complaint against Fernando M. Montalvo for lack of merit, as his involvement was not shown to be habitual and was limited to accommodating friends without interest, a denial corroborated by Lopez. The Court found Dolores T. Lopez guilty of conduct prejudicial to the best interest of the service. Despite the complaint being anonymous, her own admissions during the investigation substantiated the allegations. She admitted to repeatedly lending money to low-ranking court employees for over two years, receiving a 10% return (₱10 per ₱100), holding ATM cards as collateral, and conducting transactions during break times or after office hours. The Court emphasized that court personnel must avoid any conduct that diminishes public faith in the judiciary. While her actions may not have violated a specific circular against usury, they constituted improper conduct unbecoming of a court employee who handles fiduciary duties related to salary disbursements. Engaging in a lending business within court premises, especially targeting financially vulnerable co-employees, creates an appearance of impropriety and undermines the integrity of the judicial office. Lopez was suspended for one (1) month and one (1) day, with a stern warning that a repetition would be dealt with more severely.