A.M. No. 02-1-66-RTC ; August 19, 2004
RE: REPORT ON THE FINANCIAL AUDIT CONDUCTED IN THE REGIONAL TRIAL COURT, BRANCH 34, BALAOAN, LA UNION. (Clerk of Court, ATTY. JOVITO M. MARRON)

FACTS

This administrative case originated from a financial audit requested by Executive Judge Senecio O. Tan of the Regional Trial Court (RTC), Branch 34, Balaoan, La Union, concerning the collections of his former Clerk of Court, Atty. Jovito M. Marron. Atty. Marron, who assumed his duties in 1991, was the concurrent cashier and disbursement officer responsible for collecting and remitting various judiciary funds. He went on leave in August 1999 and failed to return, leading to his prior dismissal from service for absence without leave, a resolution later held in abeyance.
The audit for the period May 1990 to August 2001 revealed significant financial irregularities. Atty. Marron incurred shortages in his remittances to the Land Bank of the Philippines: P192.00 for the Sheriff General Fund and P5,387.55 for the Judiciary Development Fund. More egregiously, the audit discovered that after his absence began, Atty. Marron made and facilitated numerous unauthorized withdrawals from the court’s Fiduciary Fund savings account, totaling P626,747.00. These withdrawals continued through 2000, with some transactions performed by his wife and other individuals.

ISSUE

Whether Atty. Jovito M. Marron, as Clerk of Court, is administratively liable for the financial shortages and unauthorized withdrawals of judiciary funds under his custody.

RULING

Yes, Atty. Marron is administratively liable for Gross Dishonesty, Grave Misconduct, and Conduct Prejudicial to the Best Interest of the Service, warranting dismissal. The legal logic is anchored on the fiduciary nature of his position and the stringent accountability required of court personnel handling public funds. As Clerk of Court, he was a custodian of court funds and properties, acting as a trustee thereof with the solemn duty to discharge his functions with utmost integrity and probity. His failure to remit the full amounts collected constitutes dishonesty and a breach of this trust.
The unauthorized withdrawals from the Fiduciary Fund, which continued even after he had ceased reporting for duty, constitute grave misconduct. Supreme Court Circular No. 13-92 explicitly mandates that withdrawals from such funds require the signatures of both the Executive/Presiding Judge and the Clerk of Court. By single-handedly withdrawing vast sums or allowing others to do so without the required judicial approval, Atty. Marron demonstrated a flagrant disregard of established rules, amounting to misappropriation. His actions eroded public confidence in the judiciary’s financial management. The Court emphasized that conduct which violates public accountability and diminishes faith in the judiciary cannot be tolerated. Consequently, he was dismissed from service with forfeiture of all retirement benefits, ordered to restitute the total amount of P632,326.55, and directed to show cause why he should not be disbarred. The OCA was also ordered to assist in his criminal prosecution.