AM 95 1 07; (March, 1996) (Digest)
A.M. No. 95-1-07-RTC March 21, 1996
JDF ANOMALY IN THE RTC OF LIGAO, ALBAY
FACTS
A 1994 audit by retired Justice Felipe B. Kalalo revealed serious irregularities in the Judiciary Development Fund (JDF) and Fiduciary Fund collections at the RTC of Ligao, Albay. Cash Clerk Aurora Llanto admitted that JDF collections from September 1994 were not deposited and were instead used to encash the salary and RATA checks of the late Clerk of Court, Pedro Santayana. Further, the JDF cashbook falsely indicated that collections from March to August 1994 had been deposited, but Llanto could not produce the corresponding deposit slips. An expanded audit by the Fiscal Audit Division confirmed these findings, noting delayed deposits of Fiduciary Funds and JDF collections spanning several years, which were only remitted after the initial audit.
ISSUE
Whether respondent Aurora Llanto is administratively liable for her handling of the court’s fiduciary collections.
RULING
Yes, respondent Aurora Llanto is guilty of gross negligence, dishonesty, and grave misconduct warranting dismissal. The legal logic is anchored on her fundamental breach of explicit circulars governing the handling of court funds. Administrative Circular No. 5-93 mandates the immediate deposit of JDF collections with the Land Bank, while Administrative Circular No. 13-92 requires the same for fiduciary funds. Llanto’s failure to make timely deposits constituted gross negligence. Her act of falsifying the cashbook to make it appear deposits were made when they were not is a clear act of dishonesty. Furthermore, using JDF collections to encash a superior’s checks constitutes grave misconduct, as it involves the misappropriation of public funds for personal accommodation. The Court emphasized that public office is a public trust, requiring the highest degree of integrity. Restitution of the funds does not extinguish administrative liability. The penalties for these grave offenses are prescribed by the Omnibus Rules Implementing the Administrative Code, which mandate dismissal with forfeiture of benefits and disqualification from reemployment.