G.R. No. A.M. No. P-05-2065. April 2, 2009.
REPORT ON THE FINANCIAL AUDIT CONDUCTED ON THE BOOKS OF ACCOUNTS OF MR. AGERICO P. BALLES, MTCC-OCC, TACLOBAN CITY.

FACTS

On October 25, 2004, the Financial Audit Team of the Office of the Court Administrator (FAT-OCA) conducted an examination of the books of accounts of the Municipal Trial Court in Cities (MTCC) of Tacloban, Leyte, covering the period from October 1, 1989, to September 30, 2004, during the tenure of Clerk of Court Mr. Agerico P. Balles. The audit revealed: (1) a shortage of ₱213,466.87 in the Fiduciary Fund; (2) cash shortages of ₱12,814.00 and ₱86.00 representing uncollected marriage solemnization fees for the Judiciary Development Fund (JDF) and Special Allowance for the Judiciary Fund (SAJF); (3) unremitted bet money collections totaling ₱18,031.75 still in the possession of the City Prosecutor; and (4) the need for Balles to explain unidentified withdrawals and deposits in the Land Bank of the Philippines (LBP) passbook and unreported/unrecorded collections. The Court, upon the OCA’s recommendation, directed Balles to pay the shortages, submit required documents, and explain his actions. In his compliance, Balles claimed the marriage solemnization fee shortage was attributable to MTCC Branch 2, deposited the ₱213,466.87 fiduciary shortage, and stated that records for withdrawn cash bonds had been previously submitted to the OCA. The OCA, in a subsequent Memorandum Report, found Balles’ explanations unsatisfactory, highlighting his failure to immediately deposit fiduciary collections, issue official receipts, remit confiscated bet money to the JDF, withdraw and remit accrued interest to the JDF, and ensure the proper remittance of marriage solemnization fees, constituting gross neglect of duty.

ISSUE

Whether respondent Clerk of Court Agerico P. Balles is administratively liable for gross neglect of duty in the handling and management of judiciary funds.

RULING

Yes, respondent Agerico P. Balles is GUILTY of gross neglect of duty. The Court found that Balles failed to perform his primordial duties as Clerk of Court. He violated Supreme Court Circular Nos. 13-92 and 5-93 by not immediately depositing fiduciary collections with an authorized government depositary bank (Land Bank of the Philippines), issuing temporary receipts instead of official receipts, failing to remit confiscated bet money to the JDF, and not withdrawing and remitting accrued interest from bank accounts to the JDF. His failure to ensure the proper collection and remittance of marriage solemnization fees and to maintain proper records of collections and remittances further demonstrated gross neglect. The Court emphasized that clerks of court are not authorized to keep funds in their custody and must deposit collections immediately. Balles’ belated deposit of the fiduciary shortage did not exonerate him. Gross neglect of duty, even for a first offense, warrants dismissal. Accordingly, Agerico P. Balles is DISMISSED from the service with forfeiture of all retirement benefits except accrued leave credits, with prejudice to reemployment in any government agency, and the Civil Service Commission is ordered to cancel his civil service eligibility.