A.M. No. P-15-3398, July 12, 2022
Office of the Court Administrator, Complainant, vs. Clerk of Court VI Edipolo P. Sarabia, Jr.; Cash Clerk III Haydee B. Salazar; Cashier Unit Clerks III Marifi A. Oquindo, Aimee May D. Agbayani, and Orlando A. Marquez; All of the Office of the Clerk of Court, Regional Trial Court, Davao City, Davao del Sur, Respondents.

FACTS

This administrative case arose from a financial audit conducted on the Office of the Clerk of Court (OCC) of the Regional Trial Court in Davao City. The audit was ordered due to the repeated failure of Clerk of Court VI Edipolo P. Sarabia, Jr. to submit mandatory monthly financial reports for various court funds. The audit team examined the Judiciary Development Fund (JDF), Special Allowance for the Judiciary Fund (SAJF), Mediation Fund (MF), Sheriffs Trust Fund (STF), and Fiduciary Fund (FF) covering the period from November 2010 to July 2015.
The audit revealed massive and pervasive irregularities. The findings included substantial shortages across multiple funds: a shortage of ₱84,679.60 in the JDF, ₱52,317.52 in the SAJF, and ₱39,167.66 in the STF. Most egregiously, a staggering shortage of ₱24,711,252.70 was uncovered in the Fiduciary Fund. These shortages resulted from undeposited collections, unaccounted and unauthorized withdrawals, double withdrawals of cash bonds, and the misappropriation of funds. Sarabia, as the accountable officer, and Salazar, as the cash clerk, were found to be principally responsible for the custody, collection, and disposition of these funds.

ISSUE

Whether the respondents are administratively liable for gross neglect of duty, gross dishonesty, and grave misconduct in handling court funds.

RULING

Yes, the respondents are administratively liable. The Court emphasized that court personnel involved in the management of judiciary funds are bound by the highest standards of integrity and probity. Their duty is one of public trust. The audit findings constituted prima facie evidence of mishandling, and the burden shifted to the respondents to present clear evidence to rebut the shortages. They failed to do so.
The magnitude and nature of the discrepancies—particularly the massive Fiduciary Fund shortage involving millions in undeposited collections and unauthorized withdrawals—transcended mere negligence. They constituted gross dishonesty and grave misconduct, which are serious offenses punishable by dismissal even for a first offense. Clerk of Court Sarabia, as the officer primarily accountable for all court collections, bore the greatest responsibility. His failure to submit reports and his direct involvement in the irregularities demonstrated gross neglect and dishonesty. Cash Clerk Salazar, as custodian of collections, was equally culpable for the undeposited funds and unaccounted withdrawals.
The three other clerks (Oquindo, Agbayani, and Marquez) were found liable for simple neglect of duty. While not directly accountable for the funds, they were responsible for preparing deposit slips and reports. Their failure to properly perform these duties, which contributed to the breakdown of financial controls, warranted a lesser penalty. The Court dismissed Sarabia and Salazar from service with forfeiture of all retirement benefits and perpetual disqualification from re-employment in government. The OCA was directed to file criminal charges against them. The three clerks were suspended for six months without pay.