G.R. No. A.M. No. P-12-3091 (Formerly OCA IPI No. 10-3426-P). January 04, 2022.
Clerk of Court Yvonne Q. Rivera, Complainant, vs. Rex J. Geroche, Cash Clerk III, Municipal Trial Court in Cities, Kabankalan City, Negros Occidental, Respondent.

FACTS

This administrative case stemmed from a Complaint-Affidavit filed by Yvonne Q. Rivera, Clerk of Court IV of the MTCC of Kabankalan City, against Rex J. Geroche, Cash Clerk III of the same court, for malversation, falsification of documents, and gross dishonesty. Respondent’s duties included issuing official receipts, depositing collections, handling cash bonds, maintaining books of accounts, and preparing monthly reports for the JDF, LRF, and Fiduciary Fund. Initially, respondent performed competently, and audits were in order. In February 2010, respondent stopped reporting for work after being instructed to submit reports to the State Auditor for verification. Complainant discovered that reports and documents were missing from respondent’s custody. An audit on March 8, 2010, was impossible due to the missing documents. The Presiding Judge issued memos ordering respondent to report and explain, which he disregarded. Respondent later admitted to complainant and the Presiding Judge that he had misappropriated office funds. Complainant later received a letter from the Court directing her to explain the failure to submit monthly reports from August 2009 to June 2010, which she believed had been transmitted as respondent had shown her transmittal receipts. Upon investigation, complainant discovered the collections were not deposited. Respondent turned over the court’s savings passbook, which revealed irregular deposits and withdrawals. Complainant reported the matter to the Land Bank of the Philippines and the Philippine National Police. The OCA directed respondent to comment, but he informed them he had resigned effective August 23, 2010, and would not submit a comment. The OCA recommended respondent’s dismissal for gross dishonesty. The Court directed a financial audit, which found complainant failed to exercise close supervision over respondent. Complainant was directed to explain undocumented Fiduciary Fund withdrawals and failure to deposit collections, and to restitute and deposit the amounts. Complainant compulsorily retired in 2016 and later deposited a total of PHP 340,340.00 to cover the shortages incurred by respondent. The OCA found that although complainant had no participation in the unauthorized withdrawals, she was remiss in her supervisory duties.

ISSUE

Whether respondent Rex J. Geroche is administratively liable for gross dishonesty and other charges related to the misappropriation of court funds.

RULING

Yes. The Court found respondent Rex J. Geroche guilty of Gross Dishonesty and Grave Misconduct. His actions of misappropriating court funds, failing to deposit collections, forging signatures to make unauthorized withdrawals, and failing to submit required reports constituted a clear breach of the trust reposed in him as a court cashier. His resignation did not render the administrative case moot. For these offenses, which are classified as grave under Rule 140 of the Rules of Court, the penalty is dismissal from service. Since respondent had already resigned, the penalty is convertible to a fine equivalent to his salary for one year. Furthermore, he is perpetually disqualified from reemployment in any government agency, and his retirement benefits, except accrued leave credits, are forfeited. The Court also found complainant Yvonne Q. Rivera administratively liable for Simple Neglect of Duty for her failure to exercise close supervision over respondent, which contributed to the irregularities. Considering her restitution of the shortages and other mitigating circumstances, she was fined in the amount of PHP 10,000.00.