G.R. No. A.M. No. P-09-2598, February 12, 2009
REPORT ON THE FINANCIAL AUDIT CONDUCTED IN THE MCTC-MADDELA, QUIRINO

FACTS

This administrative case originated from a letter dated May 19, 2006, by then Acting Presiding Judge Josephine B. Gayagay of the Municipal Circuit Trial Court (MCTC) of Maddela-Nagtipunan, Quirino, informing the Court Administrator of the continuous absence without official leave (AWOL) of Clerk of Court II Francisca B. Dueñas since April 19, 2006, and requesting an immediate audit of her financial accountabilities, as no reports had been submitted since 2005. The Court dropped Dueñas from the rolls effective April 19, 2006, for being AWOL and declared her position vacant. Evelyn P. Cadavis was designated as Officer-in-Charge. A financial audit team examined the court’s funds for the period January 1, 1997, to January 31, 2007. The audit revealed significant irregularities and shortages in Dueñas’s accounts, specifically in the Judiciary Development Fund (JDF), Special Allowance for the Judiciary Fund (SAJF), and Fiduciary Fund. For the JDF, Dueñas had a shortage of ₱4,208.50 due to delayed and incomplete remittances, indicating misappropriation. For the SAJF, she had a shortage of ₱14,202.80, also due to delayed and incomplete remittances and non-submission of monthly reports. For the Fiduciary Fund, an initial shortage of ₱414,164.82 was found, which could be reduced to ₱149,664.82 if supporting documents for certain withdrawals were presented. The audit also found two missing booklets of official receipts and unremitted collections of ₱100.00 (later deposited). Cadavis’s accounts showed over-remittances. Dueñas failed to submit an explanation despite directives.

ISSUE

Whether respondent Francisca B. Dueñas, former Clerk of Court II, is administratively liable for the shortages and irregularities in the court’s fiduciary and other funds, and if so, what is the appropriate penalty.

RULING

The Supreme Court found Francisca B. Dueñas GUILTY of DISHONESTY and GROSS NEGLECT OF DUTY. The audit findings constituted prima facie evidence of misappropriation of judiciary funds, which she failed to rebut. As an accountable officer, her failure to remit collections on time and in full, coupled with missing receipts and unsubstantiated withdrawals, amounted to dishonesty and gross neglect. The Court emphasized the high degree of responsibility and integrity required of court personnel handling fiduciary funds. Considering the gravity of the offenses and the amounts involved, and pursuant to the Uniform Rules on Administrative Cases in the Civil Service which prescribe dismissal for first offenses of dishonesty and gross neglect, the penalty of DISMISSAL FROM THE SERVICE was imposed. However, as she had already been dropped from the rolls, the penalty is converted to a FINE of ₱40,000.00, payable to the Court, and FORFEITURE of all retirement benefits (except accrued leave credits) with prejudice to re-employment in any government agency. She was also ORDERED to RESTITUTE the shortages: ₱4,208.50 for JDF, ₱14,202.80 for SAJF, and ₱149,664.82 for the Fiduciary Fund (or the higher amount if she fails to submit supporting documents). The Court further DIRECTED the Office of the Court Administrator to coordinate with the prosecution arm for her criminal liability, the National Bureau of Investigation to cause her arrest until she complies with restitution, and the Executive Judge to monitor the Officer-in-Charge and locate Dueñas to serve the decision.