A.M. No. 01-10-279-MCTC. October 15, 2007. Report on the Judicial Audit Conducted in the Municipal Circuit Trial Court, Gen. M. Natividad-Llanera, Nueva Ecija.
FACTS:

A judicial audit was conducted on the MCTC of Gen. M. Natividad-Llanera, Nueva Ecija, then presided by Judge Octavio A. Fernandez, to verify reports that cash bonds for accused individuals were being paid directly to him without official receipts. The audit and subsequent investigation by a designated Justice found that Judge Fernandez had indeed personally received and retained cash bail bonds in several criminal cases, in direct violation of procedural rules requiring deposit with the court. Furthermore, he misappropriated a P10,000.00 settlement intended for a civil aspect of a case.
The investigation also revealed that in two other criminal cases for violation of B.P. 22, the accused entrusted P300,000.00 to Clerk of Court Teresita S. Esteban for full settlement of the civil liability. The private complainant, however, retracted his affidavit of desistance, stating he only received P235,000.00. The Clerk of Court manifested in open court that Judge Fernandez took P30,000.00 from the amount, with the disposition of the remaining P35,000.00 left unexplained.

ISSUE

Whether respondents Judge Octavio A. Fernandez and Clerk of Court Teresita S. Esteban are administratively liable for their actions concerning court funds.

RULING

Yes, both respondents are administratively liable. The Supreme Court found Judge Fernandez guilty of Gross Misconduct. His act of personally receiving and retaining cash bonds constituted a blatant disregard of Section 14, Rule 114 of the Revised Rules on Criminal Procedure, which mandates that cash bail be deposited with the court. This act, coupled with the misappropriation of settlement funds, is a grave transgression that erodes public trust in the integrity of the judiciary. Although Judge Fernandez had already retired, the Court retained jurisdiction as the infractions occurred during his incumbency. Considering this was his second administrative offense, he was fined P40,000.00 and the Court Administrator was directed to file a corresponding criminal complaint.
Clerk of Court Teresita S. Esteban was found guilty of Dishonesty for her role in the misappropriation of the P65,000.00 from the P300,000.00 settlement. As an accountable officer, her failure to properly safeguard and account for the funds held in trust constitutes a grave offense. Given that this was also not her first administrative offense, the penalty of dismissal from the service was imposed, with forfeiture of all benefits except earned leave credits and perpetual disqualification from reemployment in any government agency.