G.R. No. A.M. No. 96-1-25-RTC. April 18, 1997
REPORT ON THE FINANCIAL AUDIT IN RTC, petitioner, vs. GENERAL SANTOS CITY; AND THE RTC & MTC OF POLOMOLOK, SOUTH COTABATO, respondents.

FACTS

This administrative case arose from a financial audit of the books of account of the clerks of court of the Regional Trial Court (RTC) of General Santos City and the RTC and Municipal Trial Court (MTC) of Polomolok, South Cotabato. For the RTC of General Santos City, the audit revealed a shortage of P196,983.49 in the Judiciary Development Fund (JDF) collections for the period April 1991 to December 1994. Social Welfare Officer II Teresita Blanco, who handled the cash collections despite her unrelated appointment, admitted to the shortage. She claimed she used the funds for personal and family emergencies, including medical expenses and loans to co-employees. Clerk of Court Atty. Elmer Lastimosa disclaimed knowledge, stating he inherited the system and trusted Blanco, who was his child’s godmother.
The audit of the RTC of Polomolok found that Clerk of Court Atty. Antonio Tagami failed to properly account for and remit fiduciary fund collections, commingling them with his personal funds and failing to deposit them in an authorized government depository bank. For the MTC of Polomolok, the audit noted a discrepancy in a Certificate of Time Deposit, which was later clarified by the bank as a posting error pertaining to a different municipal account.

ISSUE

The primary issue is whether the court personnel involved are administratively liable for their handling and misappropriation of court funds.

RULING

The Supreme Court found the respondents administratively liable. Teresita Blanco is guilty of dishonesty for misappropriating public funds. The Court dismissed her from service with forfeiture of all leave credits and retirement benefits, including the amount of P52,340.49 representing the money value of her leave credits, and with disqualification for reemployment in any government office. Her partial restitution was credited, and her future salaries were ordered applied to the remaining shortage. Atty. Elmer Lastimosa is guilty of gross neglect of duty, inefficiency, and incompetence. As the accountable officer, his duty to supervise and safeguard court funds is non-delegable. His blind reliance on a subordinate and failure to institute proper accounting controls constituted gross negligence, warranting his suspension for six months and one day. Atty. Antonio Tagami is guilty of misconduct for his failure to properly handle fiduciary funds, leading to his suspension for six months. The Court also referred the matter for possible criminal prosecution and ordered a reevaluation of the MTC Polomolok audit report. The legal logic rests on the principle that court personnel, especially clerks of court as custodians of funds, bear a heavy burden of accountability and must exercise the highest degree of diligence to preserve the integrity of judicial finances.