GR 125213; (January, 1999) (Digest)
G.R. No. 125213 January 26, 1999
MILAGROS L. DIAZ, petitioner, vs. SANDIGANBAYAN, respondent.
FACTS
Milagros L. Diaz, the former postmistress of Tandag, Surigao del Sur, was convicted by the Sandiganbayan of malversation of public funds under Article 217 of the Revised Penal Code. An audit on March 4, 1983, revealed she had made cash payments totaling P6,171.23 for various operational expenses (e.g., telephone rental, office rental, gasoline, repairs) and had unrecorded stamp sales of P8,020.40, resulting in a reported cash shortage of P14,191.63. After being charged, a reinvestigation by the Tanodbayan prosecutor recommended dismissal, finding the expenses legitimate and incurred for postal operations, and noting partial replenishment by the Regional Office and restitution by Diaz. The Sandiganbayan denied motions to withdraw the information. During trial, evidence showed Diaz had encashed a P9,813.99 check from her brother-in-law in July 1983, which she claimed was a loan to cover the shortage pending official replenishment. The Sandiganbayan found this check was actually intended to replenish her shortage, not a personal loan, and convicted her.
ISSUE
Whether the Sandiganbayan erred in convicting petitioner Milagros L. Diaz of malversation of public funds.
RULING
The Supreme Court affirmed the Sandiganbayan’s decision with modification. The Court held that the elements of malversation were present: Diaz was a accountable public officer, she was accountable for public funds, and she incurred a shortage due to her failure to properly account for them. Her defense of good faith—that the expenses were legitimate and she used personal funds to cover the shortage pending replenishment—was rejected. The Court found her act of encashing a check from a relative to cover the shortage constituted an admission of the shortage and an attempt to make restitution, which does not extinguish criminal liability. The mitigating circumstance of voluntary restitution was acknowledged. The penalty was modified to an indeterminate sentence of six (6) months of arresto mayor as minimum to six (6) years and one (1) day of prision mayor as maximum, while affirming the fine and perpetual special disqualification.