G.R. No. L-5799, February 23, 1911
THE UNITED STATES vs. CARLOS H. ACEBEDO

FACTS

Carlos H. Acebedo, the municipal president of Palo, Leyte, was charged with malversation of public funds. An audit revealed that certain fines and costs collected by his office on behalf of the justice of the peace were not remitted. Acebedo claimed he had delegated the collection and remittance duties to his secretary, Crisanto P. Urbina. Urbina admitted to collecting the funds but failed to turn them over, later confessing he had used the money for personal purposes. The funds were eventually accounted for and remitted after the audit. Acebedo was convicted by the trial court, which found him responsible for the missing funds.

ISSUE

Whether Acebedo is guilty of malversation of public funds under the law, given that the funds were collected and misappropriated by his secretary without his direct participation or proven negligence.

RULING

No. The Supreme Court reversed the conviction and ordered Acebedo’s discharge. The Court held that for malversation to exist, the accused must have converted the funds to personal use or permitted another to do so through negligence. Here, the evidence showed that Acebedo did not personally receive, possess, or convert the funds. His secretary, Urbina, acted alone in misappropriating the money, and no conspiracy or negligence on Acebedo’s part was proven. The presumption of guilt from failure to account for public funds was rebutted by proof that Acebedo never had physical possession of the money and had no knowledge of the theft. Delegating collection duties to a subordinate, without more, does not constitute the negligence or bad faith required for malversation.