G.R. No.: A.M. No. P-10-2840 (Formerly A.M. No. 10-7-87-MTC)
Date: June 23, 2015

Case Parties: OFFICE OF THE COURT ADMINISTRATOR, Complainant, vs. MS. FLORED L. NICOLAS, former Court Interpreter and Officer-in-Charge; MS. ERLINDA U. CABRERA, former Clerk of Court II; and MR. EDWIN SANTOS, Clerk of Court II, all of the MUNICIPAL TRIAL COURT, GUIGUINTO, BULACAN, Respondents.

FACTS

1. A 2004 financial audit of the Municipal Trial Court (MTC) of Guiguinto, Bulacan, covering March 1985 to July 31, 2004, revealed a shortage of ₱1,483,351.85 under then Clerk of Court II Erlinda U. Cabrera. She was subsequently dismissed from service in 2006 and ordered to restitute the amount.
2. Pending resolution of Cabrera’s cases, Court Interpreter Flored L. Nicolas was appointed Officer-in-Charge (OIC) to handle court financial transactions from August 1, 2004, until Clerk of Court II Edwin C. Santos was appointed on July 13, 2006.
3. A second financial audit was conducted from March 1 to 5, 2010, covering August 1, 2004, to February 28, 2010. It revealed:
a. For Edwin Santos (accountable from August 1, 2006, to February 28, 2010): Shortages of ₱7,355.40 in the Judiciary Development Fund (JDF) and ₱2,000.00 in the Fiduciary Fund (FF), totaling ₱9,355.40, which he had already restituted. The audit also found he failed to report and deposit Mediation Fund collections totaling ₱84,000.00 from October 2008 to February 2010.
b. For Flored Nicolas (accountable from August 1, 2004, to July 31, 2006): Shortages of ₱14,160.50 in the Special Allowance for the Judiciary Fund (SAJF), ₱9,344.50 in JDF, and ₱154,333.24 in FF, totaling ₱177,838.24, which remained outstanding. Furthermore, the triplicate copies of Fiduciary Fund Official Receipts Nos. 6729451-6729500 for February 2005 to June 2006 were not presented, with specific receipts (6729466, 6729478, 6729481, 9729485, 9729500) unaccounted for, potentially increasing her liability.
4. The audit team recommended administrative actions, including directives for Cabrera to restitute a balance of ₱1,330,436.55, for Nicolas to explain and restitute her shortages, and for Santos to explain his failures. These recommendations were approved by the Court.
5. In responses:
a. Cabrera filed a Manifestation requesting her compliance be held in abeyance pending the final resolution of her criminal case for malversation.
b. Santos submitted a letter-explanation attributing delays to lack of personnel and his Bar exam preparations, praying for a chance to rectify his lapses without penalty.
c. Notices to Nicolas were returned unserved (“RTS-moved out”), and her whereabouts, despite efforts to locate her, remained based only on her last known address.

ISSUE

The primary issue is whether respondents Erlinda U. Cabrera, Flored L. Nicolas, and Edwin C. Santos are administratively liable for their respective failures and shortages in handling judiciary funds, and what the appropriate penalties should be.

RULING

1. As to Erlinda U. Cabrera: Her request to hold restitution in abeyance due to a pending criminal case is denied. The Court ruled that an administrative case is independent of a criminal case. Her dismissal from service and order for restitution in the earlier administrative case (A.M. Nos. P-05-2027 and P-05-2028) stands. She is DIRECTED to restitute the balance of her accountability amounting to ₱1,330,436.55.
2. As to Flored L. Nicolas: She is found guilty of DISHONESTY and GROSS MISCONDUCT. Her failure to deposit collections on time, the outstanding shortages totaling ₱177,838.24, and her failure to account for official receipts constitute gross dishonesty and grave misconduct, which are punishable by dismissal even for a first offense. Since she had already been dropped from the rolls for being Absent Without Leave (AWOL) and dismissal is no longer feasible, the Court imposed the following:
a. She is ordered to restitute the total shortage of ₱177,838.24, plus 6% per annum interest from the finality of the decision until full payment.
b. The monetary value of her earned leave credits and other benefits shall be applied to the payment of her shortages and the interest.
c. The Office of the Court Administrator is directed to determine her liability concerning the unaccounted official receipts.
3. As to Edwin C. Santos: He is found guilty of SIMPLE NEGLECT OF DUTY. While he restituted his shortages, his failure to deposit the ₱84,000.00 in Mediation Fund collections on time and his violations of circulars regarding timely deposits and reporting constitute neglect. The Court considered his restitution, his reasons (multi-tasking due to lack of personnel and Bar exam preparation), and the absence of malicious intent. He is FINED in the amount of Ten Thousand Pesos (₱10,000.00), to be deducted from the monetary value of his earned leave credits, with a STERN WARNING that repetition will be dealt with more severely.
4. The Court also resolved to serve anew copies of its resolutions to Edwin Santos at his given address.