G.R. No. 130473, October 21, 1998.
ELIZABETH RAMOS, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION (THIRD DIVISION), LABOR ARBITER JOSE G. DE VERA, U.S. EMBASSY FILIPINO EMPLOYEES CREDIT COOPERATIVE (USECO) AND ITS PRESIDENT, MARVIN RAMOS, respondents.

FACTS

Petitioner Elizabeth Ramos was employed in 1978 by respondent USECO, a credit cooperative, and was promoted to Management Assistant in 1987. In 1993, a new Board of Directors created an Audit and Inventory Committee (AIC) which uncovered anomalies in USECO’s lending transactions. Petitioner was called, along with co-employees, to explain irregularities noted in the AIC report, including unrecorded loans, fabricated ledgers to conceal loans exceeding limits, falsification of documents, special accommodations for encashment of checks, and granting loans to resigned members. Petitioner submitted a written explanation on June 18, 1993, essentially justifying the acts as accommodations made under prevailing practices and the prerogatives of individuals in authority. She was preventively suspended for thirty days on July 20, 1993, and later placed on forced leave with pay. An external audit confirmed the irregularities and discovered shortages in bank deposits and overages in loan receivables. On September 17, 1993, USECO dismissed petitioner for loss of trust and confidence. She filed a complaint for illegal dismissal, illegal suspension, underpayment, moral damages, and attorney’s fees. The Labor Arbiter sustained the suspension and dismissal. The NLRC initially reversed the Labor Arbiter but, upon granting USECO’s second motion for reconsideration, reinstated the Labor Arbiter’s decision. Petitioner’s motion for reconsideration was denied, prompting this petition.

ISSUE

1. Whether there was just cause for petitioner’s suspension and dismissal on the ground of loss of trust and confidence.
2. Whether the NLRC committed grave abuse of discretion in granting private respondent’s second motion for reconsideration.

RULING

1. Yes, there was just cause for dismissal. Petitioner held the position of Management Assistant, a fiduciary role requiring a high degree of trust and confidence, with duties involving financial statements, loan pre-audits, and check preparation. Her admission of participating in creating dummy records to accommodate borrowers beyond authorized limits, and the external audit’s confirmation of irregularities and shortages, constituted breach of trust and serious misconduct. The dismissal of a related criminal case for estafa is not a bar to dismissal on the ground of loss of trust and confidence. Procedural due process was observed as she was given the opportunity to explain both orally and in writing.
2. No, the NLRC did not commit grave abuse of discretion. Section 14 of the NLRC Rules allows only one motion for reconsideration, but the NLRC may relax procedural rules to correct patent errors and serve justice. The NLRC’s initial decision contained patent errors in finding denial of due process and in relying on the dismissal of the criminal case. Entertaining the second motion to correct these errors was within its discretion to facilitate justice, as technical rules should not frustrate its ends.