G.R. No. L-5624
THE UNITED STATES, plaintiff-appellee, vs. MARIANO FELICIANO, defendant-appellant.
February 3, 1910

FACTS:
Mariano Feliciano, a municipal treasurer, was charged under Section 1 of Act No. 1740 for misappropriating P53.05 of public funds. During an audit of his accounts, a shortage of P53.05 was discovered in the municipal treasury cash. Upon being notified of the difference, Feliciano immediately produced the exact amount from his pocket to cover the deficit. He testified that the money was the remainder of certain payments for laborers’ wages, which he had kept in his desk because not all laborers had appeared to collect their wages, and he was preparing a ten-day report. The Court of First Instance convicted him. Feliciano appealed, arguing, among other things, that the facts proven did not constitute the crime of misappropriation of public funds.

ISSUE:
Did the proven facts establish the crime of misappropriation of public funds under Act No. 1740 , especially considering that the accused immediately produced the missing funds upon demand?

RULING:
No. The Supreme Court reversed the conviction. The Court held that Section 2 of Act No. 1740 provides that prima facie evidence of misappropriation arises from a public officer’s “failure or inability… to produce all the funds and property properly in his charge on the demand of any officer authorized to examine or inspect.” In this case, the moment the shortage was discovered and the treasurer was notified, he immediately presented the money. Therefore, no prima facie evidence of the crime of misappropriation could be established, nor was there any other proof that the funds had been put to personal use by the accused. The immediate production of the funds by Feliciano negated the condition for the presumption of misappropriation under the law.