A.M. No. 00-3-108-RTC and A.M. No. 00-11-260-MCTC; January 28, 2005
RE: REPORT OF ACTING PRESIDING JUDGE WILFREDO F. HERICO ON MISSING CASH BONDS IN CRIMINAL CASE NO. 750 AND CRIMINAL CASE NO. 812 and RE: FINANCIAL AUDIT ON THE CASH ACCOUNTS OF MESSRS. ROLANDO B. SAA AND BENJAMIN SEVILLA OF MUNICIPAL CIRCUIT TRIAL COURT OF CAPALONGA STA. ELENA, CAMARINES NORTE.

FACTS

These consolidated administrative matters stemmed from missing cash bonds totaling Thirty Thousand Pesos (₱30,000) in two criminal cases at the Municipal Circuit Trial Court (MCTC) of Capalonga-Sta. Elena, Camarines Norte. Acting Presiding Judge Wilfredo F. Herico discovered the shortage upon assuming office. The missing bonds were a ₱10,000 bond for reckless imprudence and a ₱20,000 bond for theft. Investigation revealed that for the ₱20,000 bond, then Acting Judge Edgar M. Alba (who had since optionally retired) approved a bond posted with a crossed check, conditionally requiring its replacement with cash within twenty days. When this was not complied with, Judge Alba cancelled the bond. However, prior to the cancellation, an authorization letter approved by Judge Alba allowed a court interpreter to encash the very check that was the subject of the conditional approval.
A financial audit was consequently conducted on the court’s cash accounts handled by Clerk of Court Rolando B. Saa and former Officer-in-Charge Benjamin Sevilla. The audit confirmed the missing ₱30,000 in fiduciary funds and uncovered an additional shortage of ₱68,637.20 in the Judiciary Development Fund (JDF), for a total shortage of ₱98,637.20. Clerk of Court Saa attempted to shift blame for the missing bonds to the retired Judge Alba.

ISSUE

Whether retired Judge Edgar M. Alba and/or Clerk of Court Rolando B. Saa should be held administratively liable for the missing court funds.

RULING

Yes, both were held liable. The Supreme Court found Judge Edgar M. Alba administratively liable for Gross Negligence. His liability stemmed from his grossly negligent handling of the cash bond. By approving a bond secured by a check and then authorizing its encashment through a subordinate before the condition for its replacement with cash was fulfilled, he exhibited a reckless disregard of the rules governing fiduciary funds. This negligence directly facilitated the misappropriation. As a judge, he bore ultimate responsibility for the court’s funds. His retirement did not preclude administrative liability. The Court ordered the amount of ₱98,637.20 (the total shortage) to be deducted from his retirement benefits.
Clerk of Court Rolando B. Saa was found liable for Simple Negligence. As the custodian of court funds, he had a ministerial duty to properly handle, record, and safeguard them. The audit confirmed shortages under his accountability. His failure to ensure the funds’ safety and his attempt to blame Judge Alba instead of acknowledging his primary custodial responsibility constituted negligence. He was admonished with a warning. Benjamin Sevilla was absolved from liability as the audit did not establish any shortage during his tenure. The ruling reinforces the principle of strict accountability for court funds, with judges bearing administrative responsibility for their proper management and clerks of court for their direct custody.