G.R. No. A.M. No. 2008-23-SC and A.M. No. 2014-025-Ret. September 30, 2014
Case Parties:

* Administrative Matter: Alleged Loss of Various Boxes of Copy Paper During Their Transfer from the Property Division, Office of Administrative Services (OAS), to the Various Rooms of the Philippine Judicial Academy.
* Consolidated Matter: Release of Compulsory Retirement Benefits under R.A. No. 8291 of Mr. Isidro P. Austria, Former Supply Officer II, Philippine Judicial Academy, Supreme Court.
* Employees Involved: Isidro P. Austria (Supply Officer II), Eusebio M. Glor (Driver), Lenin Mario M. Ordoñez (Store Keeper IV), and Elizalde S. Carmona (Judicial Staff Employee II/Driver).

FACTS

On October 23, 2008, Boc’s Trading Co., Inc. delivered 2,400 reams of copy paper to the Supreme Court for the Philippine Judicial Academy (PHILJA). During the unloading and transfer process, 140 reams of long copy paper and 40 reams of short copy paper, valued at ₱27,000.00, were reported missing. A preliminary investigation revealed that:
1. Isidro Austria admitted using a Supreme Court vehicle to take 50 reams of short bond paper to Intramuros to pay a personal debt, though he later retracted this and blamed driver Eusebio Glor.
2. Eusebio Glor initially admitted driving Austria to Intramuros with the copy paper but later recanted, stating Austria unloaded the paper and that he had been coached by Austria.
3. Lenin Mario Ordoñez, who supervised part of the transfer, claimed he delivered 300 reams to a stockroom, but a verification found only 270 reams. He admitted using a PHILJA van without a trip ticket and leaving boxes in a reproduction room without securing the stockrooms.
4. Elizalde Carmona drove the van for Ordoñez without a trip ticket but only assisted in transferring boxes between rooms within the Court premises.
The Office of Administrative Services (OAS) investigated and found:
* Austria and Glor liable for Serious Dishonesty, Grave Misconduct, and Conduct Prejudicial to the Best Interest of the Service for the theft of the 50 reams and for giving false statements (perjury).
* Ordoñez liable for Gross Neglect of Duty for failing to exercise due diligence in overseeing the delivery and transfer, which facilitated the theft.
* Carmona liable only for driving without a trip ticket.
The OAS recommended the dismissal of Austria, Glor, and Ordoñez with forfeiture of benefits (except accrued leave credits) and restitution for the stolen papers, and a warning for Carmona. Meanwhile, Ordoñez resigned in 2009, and Austria compulsorily retired in 2012, leading to a consolidated matter regarding the release of his retirement benefits.

ISSUE

1. Whether the respondents are administratively liable for the loss of the copy paper.
2. Whether the compulsory retirement benefits of Isidro P. Austria should be released.

RULING

The Supreme Court ADOPTED the findings and recommendations of the OAS.
1. On Administrative Liability:
* Isidro Austria and Eusebio Glor are guilty of Gross Dishonesty, Grave Misconduct, and Conduct Prejudicial to the Best Interest of the Service. Their act of taking the copy paper constituted theft, a crime of moral turpitude. Their contradictory statements demonstrated dishonesty. These are grave offenses punishable by dismissal even for a first offense.
* Lenin Mario Ordoñez is guilty of Gross Neglect of Duty. As Store Keeper IV, he was responsible for the safe storage and accurate inventory of supplies. His failure to properly secure the copy paper and to use required documentation (trip tickets) constituted gross negligence, which facilitated the theft. Gross neglect of duty is also a grave offense punishable by dismissal.
* Elizalde Carmona is found liable for driving without a trip ticket. Given his limited role in merely assisting Ordoñez within the Court premises, a WARNING that a repetition will be dealt with more severely is sufficient.
2. On the Release of Retirement Benefits:
* The Court ruled that the administrative liability of Austria, Glor, and Ordoñez subsists despite Ordoñez’s resignation and Austria’s compulsory retirement. Resignation or retirement does not preclude the finding of administrative liability.
* For Isidro Austria: His compulsory retirement benefits may be released but shall be subject to the outcome of this administrative case. Since he was found guilty of grave offenses, the penalty of dismissal carries with it cancellation of eligibility, forfeiture of retirement benefits (except accrued leave credits), and perpetual disqualification from reemployment in government service. Therefore, his retirement benefits, except accrued leave credits, are FORFEITED.
* For Lenin Mario Ordoñez: His resignation was approved without prejudice to the outcome of this case. As he was also found guilty of a grave offense (Gross Neglect of Duty), the same penalties of dismissal, including forfeiture of benefits (except accrued leave credits), are imposed.
DISPOSITIVE PORTION:
The Supreme Court:
* DISMISSED Isidro P. Austria and Eusebio M. Glor from the service with forfeiture of all retirement benefits except accrued leave credits, and with prejudice to reemployment in any government agency.
DISMISSED Lenin Mario M. Ordoñez from the service with the same accessory penalties.
ORDERED Austria, Glor, and Ordoñez to jointly and severally restitute the value of the stolen copy papers (₱27,000.00).
WARNED Elizalde S. Carmona that a repetition of similar acts shall be dealt with more severely.
DIRECTED the release of only the accrued leave credits of Isidro P. Austria, his other retirement benefits being forfeited.