A.M. No. P-10-2818, November 15, 2010
Office of the Court Administrator vs. Gregorio B. Saddi, Clerk of Court, MTC, Sasmuan, Pampanga

FACTS

This administrative case originated from a financial audit of the Municipal Trial Court (MTC) of Sasmuan, Pampanga, covering September 2007 to October 2009. The audit, requested by the Acting Presiding Judge, revealed shortages in various court funds totaling ₱146,557.20 during the periods of accountability of respondent Clerk of Court Gregorio B. Saddi. The shortages pertained to the Judiciary Development Fund, Special Allowance for the Judiciary Fund, Sheriff’s Trust Fund, Fiduciary Fund, and Mediation Fund. Saddi failed to submit required monthly financial reports and did not explain the delayed remittances despite a directive. The audit also noted Saddi’s issuance of a handwritten receipt for an execution fee without issuing the corresponding writ and his history of absenteeism, including being previously suspended for being AWOL.

ISSUE

Whether respondent Gregorio B. Saddi is administratively liable for the shortages in court funds and related infractions.

RULING

Yes, the Supreme Court found Saddi guilty of gross dishonesty and grave misconduct, warranting dismissal. The legal logic is anchored on the fiduciary nature of a clerk of court’s duty as an accountable officer. Clerks of court are custodians of court funds and properties, and their failure to remit collections on time and to account for them constitutes gross dishonesty and grave misconduct, which are grave offenses punishable by dismissal even for the first offense. Saddi’s failure to have the funds forthcoming upon demand created a prima facie presumption of malversation under Article 217 of the Revised Penal Code, which is relevant in the administrative determination of dishonesty. His repeated failure to comply with circulars on deposit and reporting, coupled with his prior disciplinary record for absenteeism, demonstrated a pattern of disregard for judicial rules and integrity. The Court emphasized that the handling of judiciary funds demands the highest degree of responsibility, and Saddi’s actions eroded public trust in the administration of justice. Consequently, the Court ordered his dismissal from service with forfeiture of all benefits (except accrued leave credits to be applied to his shortages), with prejudice to reemployment in government, and directed the filing of appropriate criminal charges.