G.R. No. A.M. No. P-06-2227. August 19, 2014.
OFFICE OF THE COURT ADMINISTRATOR, Complainant, vs. ATTY. MARIO N. MELCHOR, JR., FORMER CLERK OF COURT VI, REGIONAL TRIAL COURT, BRANCH 16, NAVAL, BILIRAN (now PRESIDING JUDGE, MUNICIPAL CIRCUIT TRIAL COURT, CALUBIAN-SAN ISIDRO, LEYTE), Respondent.

FACTS

This administrative matter originated from a financial audit conducted by the Office of the Court Administrator (OCA) on the books of account of then Clerk of Court Atty. Mario N. Melchor, Jr. of the Regional Trial Court, Branch 16, Naval, Biliran, covering the period from September 1, 1997 to February 28, 2006. The audit uncovered massive shortages totaling ₱939,547.80 across various court funds: Judiciary Development Fund (JDF) – ₱40,873.00; Special Allowance for the Judiciary Fund (SAJF) – ₱99,326.80; Fiduciary Fund (FF) – ₱796,841.00; General Fund (GF) – ₱2,505.00; and Sheriffs General Fund (SGF) – ₱20.00. The audit further revealed that Melchor failed to remit numerous cash bonds amounting to ₱715,841.00 to the court’s legitimate bank account, and evidence showed unrecorded collections, cancellation of official receipts to conceal unreported collections, and issuance of new receipts with understated amounts. Melchor also failed to maintain an official cashbook for the Fiduciary Fund and made no entries in the cashbooks for JDF and SAJF from October 25, 2005. In his Comment, Melchor admitted the findings, apologized for his negligence, and explained that he used collected bail bonds amounting to ₱256,940.00 to defray his child’s hospitalization expenses. He pleaded for compassionate consideration and informed the OCA he had restituted the shortages totaling ₱796,841.00. He later assumed office as an MCTC Judge but had not received his salary due to lack of clearance.

ISSUE

Whether respondent Atty. Mario N. Melchor, Jr. is administratively liable for his handling of court funds.

RULING

Yes, the respondent is guilty of Gross Neglect of Duty, Gross Dishonesty, and Gross Misconduct. The Court adopted the OCA’s recommendation. As Clerk of Court, Melchor was an accountable officer entrusted with the collection and custody of court funds. His admission to using court funds for personal expenses, failure to immediately deposit fiduciary collections, failure to remit collections on time, failure to maintain proper cashbooks, and acts of concealing unremitted collections through cancellation and reissuance of receipts constitute flagrant violations of his duties and pertinent court circulars (Administrative Circular No. 3-2000, SC Circular Nos. 13-92 and 5-93). Personal or family emergencies cannot justify the misappropriation of judiciary funds. Although he eventually restituted the shortages, restitution does not extinguish administrative liability. His subsequent promotion to a judgeship does not absolve him of the infractions committed as a Clerk of Court. Accordingly, the Court DISMISSED Judge Mario N. Melchor, Jr. from the service effective immediately, with FORFEITURE of all retirement benefits except accrued leave credits, and with prejudice to reemployment in any government branch, agency, or instrumentality.