G.R. No. A.M. No. P-07-2354 (Formerly A.M. No. 07-5-140-MTC), February 04, 2020
Office of the Court Administrator, Complainant, v. Mila A. Salunoy, Court Stenographer and Cesar D. Uyan, Sr., Former Clerk of Court, Municipal Trial Court, Mati, Davao Oriental, Respondents.

FACTS

An audit was conducted upon the retirement of Cesar D. Uyan, Sr., Clerk of Court II of the MTC of Mati, Davao Oriental, covering the period February 1995 to June 2004. The audit revealed shortages in various court funds under his accountability: Judiciary Development Fund (JDF) – P12,774.40; General Fund (GF) – P84,064.02; Special Allowance for the Judiciary Fund (SAJF) – P1,860.60; and Fiduciary Fund – P715,914.34, for a total shortage of P740,113.80. The Fiduciary Fund shortage resulted from undeposited collections, withdrawn cash bonds without deposits, unidentified withdrawals, over-withdrawals, and bank charges. Uyan later presented an Affidavit from Mila A. Salunoy, the court’s stenographer designated as cashier, wherein she admitted appropriating missing fiduciary funds for personal use. During the investigation, Salunoy testified that Uyan instructed her not to deposit collections weekly, leading her to bring funds home, and that Uyan and others borrowed from the collections. Uyan denied borrowing funds and blamed Salunoy. The Investigating Judge found both respondents administratively liable.

ISSUE

Whether respondents Cesar D. Uyan, Sr. and Mila A. Salunoy are administratively liable for the shortages in the court’s funds.

RULING

Yes, both respondents are administratively liable.
The Court found respondents guilty of Gross Neglect of Duty, Dishonesty, and Grave Misconduct. As Clerk of Court, Uyan was the custodian of court funds and properties with a duty to supervise financial transactions strictly. His failure to ensure the proper and timely deposit of collections, allowing Salunoy to bring funds home, and his lax supervision constituted gross neglect and made him liable for the shortages. Salunoy, as the designated cashier, admitted to misappropriating funds for personal use and lending them to co-employees, acts of dishonesty and grave misconduct. Their concerted actions led to the loss. The Court ordered them to restitute jointly and severally the amount of P740,113.80. Considering Uyan had already retired, the penalty of dismissal was converted into a fine of P500,000.00, deductible from his retirement benefits. Salunoy was dismissed from service with forfeiture of all retirement benefits, except accrued leave credits, and with prejudice to re-employment in any government branch or instrumentality.