G.R. No.: A.M. No. P-92-756. May 3, 1994.
Case Parties: ANGELITA GANO, complainant, vs. ELIZABETH LEONEN, Court Stenographer I, First Municipal Circuit Trial Court, Banaue-Hungduan, Ifugao, respondent.

FACTS

Complainant Angelita Gano, Chairperson of the Hapao Multi-Purpose Cooperative, Inc., charged respondent Elizabeth Leonen, a Court Stenographer I, with malversation of P30,000.00. The cooperative had won a barangay arbitration award against Ester Humiding. To comply with the award, the cooperative, through Gano, intended to deposit P30,000.00 as partial payment with the Municipal Treasurer of Banaue on January 16, 1992. As the treasurer was out of town, respondent Leonen represented that the Municipal Circuit Trial Court was authorized to accept the money on the treasurer’s behalf. Relying on this, Gano entrusted the amount to Leonen. Leonen later provided Gano with a purported Official Receipt No. 2745380G, dated January 27, 1992, bearing the falsified signatures of Assistant Municipal Treasurer Billy La Madrid and Provincial Treasurer Samuel Marinay. When the cooperative and Humiding later settled, it was discovered that no such deposit existed with the municipal treasury. Leonen admitted to using the money for personal purposes. During the investigation by Executive Judge Segundo B. Catral, Leonen partially refunded P6,000.00 but failed to pay the balance. She did not appear at the hearings to refute the charges. Witnesses, including Billy La Madrid who affirmed the receipt was fictitious, supported the complaint.

ISSUE

Whether respondent Elizabeth Leonen should be held administratively liable for her actions in connection with the misappropriation of the P30,000.00 entrusted to her.

RULING

Yes. The Court DISMISSED respondent Elizabeth Leonen from service for gross dishonesty and grave misconduct prejudicial to the best interest of the service. The Court found that respondent, through deceit and deliberate misrepresentation, received the money in trust by falsely claiming court authority to accept it for the municipal treasurer. She compounded this by issuing a falsified receipt to deceive the complainant. Her actions constituted gross dishonesty, undermined public faith in the courts, and violated the constitutional principle that a public office is a public trust. The penalty imposed includes dismissal with forfeiture of all retirement benefits and prejudice to reemployment in any government agency. She was also ordered to return the remaining balance of P24,000.00 to complainant.