G.R. No. 171437 , October 4, 2007
HERMES E. FRIAS, SR. vs. PEOPLE OF THE PHILIPPINES

FACTS

Petitioner Hermes E. Frias, Sr., the Municipal Mayor of Capas, Tarlac, was charged with violation of Article 218 of the Revised Penal Code (Failure to Render Accounts). The Information alleged that after the Commission on Audit (COA) disallowed his cash advances totaling One Million Pesos (P1,000,000) and directed him to settle the amount, he willfully failed to render accounts for a period of two months. The prosecution established that Frias made the cash advances, which were disallowed for lack of a specific legal purpose. Despite demands from the provincial auditor, he did not account for or return the funds, arguing that he had turned over the proceeds to the municipal treasurer, Norma Panganiban, who used them to settle her own COA deficiencies.
The Sandiganbayan convicted Frias, finding all elements of the crime present. It ruled that as municipal mayor, he was an accountable officer responsible for the funds, notwithstanding his claim that Panganiban benefited from them. The court sentenced him to imprisonment and ordered him to indemnify the government. Frias appealed, arguing deprivation of due process due to an insufficient Information, that he was not an accountable officer, and that the order of restitution lacked legal basis.

ISSUE

Whether the Sandiganbayan erred in convicting petitioner Hermes E. Frias, Sr., of violation of Article 218 of the Revised Penal Code.

RULING

The Supreme Court affirmed the conviction but modified the penalty. The Court held that Frias was not deprived of due process. He waived any objection to the sufficiency of the Information by pleading not guilty and actively participating in the trial. The Information adequately informed him of the charge, stating all elements of the offense. The Court ruled that Frias was indeed an accountable public officer. Under the Local Government Code, any local official whose duty permits or requires possession or custody of government funds is accountable. As mayor who applied for, received, and acknowledged the cash advances, he was accountable for their safekeeping and proper liquidation.
All elements of the crime were proven. Frias was a public officer and an accountable officer. He was required by COA regulations to liquidate the cash advances within a prescribed period. He undisputedly failed to render an account or return the disallowed amount for over two months after the deadline. His defense that he gave the money to the municipal treasurer did not exonerate him; he remained primarily accountable. However, the Court modified the Sandiganbayan’s decision by deleting the order for Frias to indemnify the government with solidary liability. The proper civil liability should be borne jointly and severally with the municipal treasurer, as both were accountable for the same public funds.