G.R. No. A.M. No. P-14-3244 (Formerly A.M. No. 14-6-71-MCTC) June 27, 2023
Office of the Court Administrator, Complainant, vs. Ms. Fe R. Arcega, Clerk of Court II, Municipal Circuit Trial Court, Moncada-San Manuel-Anao, Tarlac, Respondent.

FACTS

This administrative case stemmed from a request for an immediate audit due to respondent Fe R. Arcega’s non-submission of monthly financial reports. The audit revealed multiple financial discrepancies. A cash count on October 2, 2013, showed a cash shortage of ₱4,727.00. As of September 30, 2013, respondent had a final accountability in the Fiduciary Fund (FF) of ₱378,575.00. The Sheriff’s Trust Fund (STF) had a shortage of ₱8,400.00, with collections from 2010 and 2011 deposited only during the audit. For the Judiciary Development Fund (JDF), Special Allowance for the Judiciary Fund (SAJF), and Mediation Fund (MF), respondent had accountabilities of ₱40,909.60, ₱138,204.20, and ₱3,500.00, respectively, as of September 30, 2013, due to erroneous footing of collections and non-deposit. Respondent also failed to deposit collections on time, incurring a penalty of ₱81,946.30 for unearned interest. Respondent admitted to cash shortages and violations, and begged for time to restitute. The Court, in a July 23, 2014 Resolution, directed restitution, imposed a fine, placed respondent under preventive suspension, and required an explanation and submission of documents, which she failed to comply with. A second audit found a total accountability of ₱618,534.51. After applying the monetary value of her earned leave credits (₱483,784.59), a balance of ₱134,749.92 remained for restitution.

ISSUE

Whether respondent Fe R. Arcega is administratively liable for gross neglect of duty, gross dishonesty, and grave misconduct for the financial irregularities and shortages in the court’s funds, and for her failure to comply with the Court’s directives.

RULING

Yes. The Court found respondent guilty of Gross Neglect of Duty, Gross Dishonesty, and Grave Misconduct. The audit findings, which respondent admitted to, constituted clear and convincing evidence of her failure to perform her duties as an accountable officer with the required diligence, and of her misappropriation of court funds for personal use. Her acts eroded public trust in the judiciary. Applying Section 2, Rule 140 of the Rules of Court, as amended by A.M. No. 21-08-09-SC, these offenses are classified as grave and carry the penalty of dismissal for the first offense. Accordingly, the Court DISMISSED respondent Fe R. Arcega from service with FORFEITURE of all retirement benefits, except accrued leave credits, and with prejudice to re-employment in any government agency. She was also ORDERED to RESTITUTE the remaining balance of ₱134,749.92.