A.M. No. 96-1-25-RTC; March 8, 2000
RE: REPORT ON THE FINANCIAL AUDIT IN RTC, GENERAL SANTOS CITY AND THE RTC & MTC OF POLOMOLOK, SOUTH COTABATO

FACTS

This administrative case stems from a financial audit of the Municipal Trial Court (MTC) of Polomolok, South Cotabato. The audit revealed serious irregularities in the handling of court funds by Clerk of Court Evelyn Trinidad. Specifically, she failed to deposit Judiciary Development Fund (JDF) and fiduciary collections daily as required by Supreme Court circulars, instead keeping collections in her bag and depositing them only once a month. She also placed fiduciary funds in time deposit accounts, issued only one official receipt for entire day’s collections, and for one year issued no receipts for fiduciary collections at all. The audit further found a shortage in the JDF and that she allowed Judge Orlando A. Oco to keep custody of her collections.
In her defense, Trinidad cited the distance to the bank and her other duties as reasons for not making daily deposits. She also claimed she economized on receipts. Judge Oco, for his part, explained that fiduciary funds were placed in time deposits to earn higher interest for litigants and that he kept custody of certificates of deposit to assure litigants their money was safe. Both claimed ignorance of the specific circulars governing these procedures.

ISSUE

Whether respondents Clerk of Court Evelyn Trinidad and Judge Orlando A. Oco are administratively liable for their handling of court funds.

RULING

Yes, both are administratively liable. The Court found Clerk of Court Trinidad guilty of gross neglect of duty, inefficiency, and incompetence. Her explanations for violating mandatory circulars were unacceptable. Administrative Circular No. 5-93 explicitly requires daily or, at minimum, periodic deposits of JDF collections, while Circular No. 13-92 mandates immediate deposit of fiduciary funds in a savings account. Her failure to comply, resulting in a cash shortage and commingling of funds, constitutes a grave breach of her duty as custodian of court funds. As the chief administrative officer, she bears direct responsibility for the collections and their safekeeping.
Judge Oco was found guilty of mismanagement of his court. A judge has the vital administrative duty to ensure effective court management and control over ministerial officers. By allowing and even participating in the irregular procedures—such as keeping custody of collections and approving the placement of funds in time deposits—he failed in his supervisory role. His claim of ignorance of the circulars is inexcusable, as judges are expected to be familiar with rules governing court operations. His actions demonstrated negligence in overseeing the court’s financial operations.
The Court suspended Clerk Trinidad for six months and one day and fined Judge Oco Ten Thousand Pesos (P10,000.00). The Office of the Court Administrator was also directed to explore criminal prosecution for malversation. The decision underscores that strict adherence to financial circulars is essential to accountability and the orderly administration of justice.