G.R. No. 100625 May 20, 1994
Emilia M. Meneses, petitioner, vs. Sandiganbayan and People of the Philippines, respondents.

FACTS

Petitioner Emilia M. Meneses, a Cashier of the Provincial Treasurer’s Office of Albay, was charged with Malversation of Public Funds for misappropriating P2,502,001.33. An audit examination revealed a cash shortage in her accountabilities. During the audit, she failed to produce cash or valid cash items to cover the shortage. She received a demand letter but in her reply, she explained the amount consisted of “chits” or loans to co-employees, which she was attempting to recover. She made partial restitutions totaling P20,660.60. The Sandiganbayan found her guilty. In her petition for review, she defended that she did not benefit personally, and the funds were disbursed as cash advances to co-employees under a tolerated “vale” system.

ISSUE

Whether the petitioner’s defense of disbursing public funds through a “vale” system for co-employees absolves her of criminal liability for malversation.

RULING

No. The petition is denied. The practice of disbursing public funds under the “vale” system is prohibited by P.D. No. 1145 (Government Auditing Code) and relevant auditing circulars. An accountable officer who consents to the improper or unauthorized use of public funds by others, as in granting loans against “vales,” is liable for malversation under Article 217 of the Revised Penal Code. The “vale” system is an unauthorized lending operation using public funds. Even assuming good faith and crediting the amount she claimed was loaned (P1,099,073.34), a substantial shortage (P1,423,588.59) remained unaccounted for. Therefore, the Sandiganbayan’s decision finding her guilty is affirmed.