A.M. No. P-17-3746. August 28, 2019.
RE: REPORT ON THE FINANCIAL AUDIT CONDUCTED AT THE MUNICIPAL TRIAL COURT IN CITIES, CEBU CITY.

FACTS

A financial audit was conducted at the Office of the Clerk of Court (OCC), Municipal Trial Court in Cities (MTCC), Cebu City, covering the accountability periods of Clerks of Court Teresita S. Remotigue, Josefina A. Uy, and Josephine R. Teves. The audit team discovered that not all collections were deposited on time. Further investigation revealed that Records Officer II Alma Bella S. Macaldo and Cashier I Josefina P. Veraque tampered with the duplicate and triplicate copies of official receipts for the Judiciary Development Fund (JDF) and the Special Allowance for the Judiciary Fund (SAJF) by understating the amounts collected and modifying transaction dates. Macaldo admitted to receiving funds from Veraque for personal use. The audit uncovered a total variance (shortage) of ₱5,405,174.60 in JDF and SAJF collections from 2013 to 2015, and a ₱28,709.06 shortage in the Fiduciary Fund. Veraque and Macaldo made partial restitutions. Clerk of Court IV Josephine R. Teves claimed she signed monthly reports in full trust and confidence of her subordinates and was unaware of the tampering, invoking the ruling in Arias v. Sandiganbayan.

ISSUE

Whether the respondents are administratively liable for their actions concerning the misappropriation and mishandling of judiciary funds.

RULING

The Court found respondents administratively liable.
1. Alma Bella S. Macaldo and Josefina P. Veraque are found GUILTY of GRAVE MISCONDUCT and SERIOUS DISHONESTY. They are DISMISSED from service with forfeiture of all retirement benefits (excluding accrued leave credits) and with prejudice to re-employment in any government branch or instrumentality. They are ordered to restitute jointly and severally the remaining balance of ₱4,069,174.60. The Office of the Court Administrator is directed to file appropriate criminal charges against them.
2. Josephine R. Teves is found GUILTY of SIMPLE NEGLECT OF DUTY. The Court modified the audit team’s recommendation, noting that while she failed to exercise the required diligence as a custodian of court funds, the fraudulent scheme was orchestrated by her subordinates. She is SUSPENDED for one (1) month and one (1) day and ordered to restitute the Fiduciary Fund shortage of ₱28,709.06. She is sternly warned that a repetition will be dealt with more severely.
The Court emphasized that all court personnel must exercise the highest degree of honesty and diligence in handling judiciary funds.