Title
Duque III vs. Veloso
Case
G.R. No. 196201
Decision Date
Jun 19, 2012
A Quedancor supervisor was dismissed for dishonesty after unauthorized withdrawals of P50,000; SC upheld dismissal, emphasizing public trust and integrity.

Case Digest (G.R. No. 204526)
Expanded Legal Reasoning Model

Facts:

  • Background and Administrative Charges
    • The respondent, Florentino Veloso, then District Supervisor of Quedancor (Quedan and Rural Credit Guarantee Corporation) in Cagayan de Oro City, was charged with three counts of dishonesty.
    • The charges arose from unauthorized withdrawals of money deposited by Juanito Quino (the complainant), who had deposited P50,000.00 intended for restructuring his loan with Quedancor.
  • Unauthorized Withdrawals and Subsequent Discovery
    • On three separate occasions, the respondent, without the complainant’s notice or authority, withdrew the entire P50,000.00 deposit with the assistance of the Quedancor cashier.
    • Upon discovering these withdrawals, the complainant demanded the return of the funds and alerted the management at Quedancor.
  • Administrative Proceedings at the Agency Level
    • The manager issued a memorandum requiring the respondent to explain his actions and return the money.
    • In compliance, the respondent returned the deposited funds and admitted that he had received the money intended for loan repayment.
    • Quedancor charged him administratively with dishonesty, found him guilty, and dismissed him from service.
    • The Civil Service Commission (CSC) subsequently affirmed the findings and the dismissal on appeal.
  • Appeal to the Court of Appeals (CA) and Mitigating Circumstances Considered
    • Dissatisfied with the dismissal, the respondent elevated his case to the CA, which upheld his guilt but modified the penalty from dismissal to a one-year suspension without pay.
    • The CA, citing Section 53, Rule IV of the Uniform Rules on Administrative Cases and past jurisprudence (e.g., Miel v. Malindog), relied on mitigating circumstances:
      • His lengthy service of 18 years.
      • His prompt admission of culpability.
      • His return of the misappropriated funds.
      • His status as a first-time offender.
  • The Present Petition and Controversy Raised
    • The CSC, filing a petition under Rule 45 of the Rules of Court, challenged the CA’s reduction of the penalty, arguing that the applicable law mandates dismissal for dishonesty.
    • The CSC contended that mitigating circumstances should not apply given:
      • The aggravating nature of his long service, which enabled his abuse of supervisory authority.
      • The fact that his admission and restitution were delayed and not purely voluntary.
      • The repeated commission of the offense on three separate occasions.
      • The explicit provision of Section 52(A)(1), Rule IV of the Uniform Rules that imposes dismissal even for first offenses.

Issues:

  • Whether the modification of the penalty by the CA—from dismissal to a one-year suspension without pay—was legally tenable under the provisions of the Uniform Rules on Administrative Cases for dishonesty.
    • Is the application of mitigating circumstances, such as length of service and admission of guilt, appropriate in a case where the respondent’s supervisory position and repeated acts of dishonesty aggravate the offense?
    • Does Section 53, Rule IV permit deviation from the prescribed penalty of dismissal mandated by Section 52, Rule IV?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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