Facts:

• The case involves the Government of the Philippine Islands suing Jose Topacio, the former Director of Posts, for an alleged shortage in government accounts amounting to P281,772.23.
• Topacio denies liability and files a cross-complaint seeking reimbursement for travel expenses and unpaid salary.
• The government also caused an attachment to be issued on Topacio's properties.
• An amended complaint is later filed, reducing the claim to P153,470.63.
• The trial court absolves Topacio from the government's complaint but awards him reimbursement for travel expenses and unpaid salary.
• The court dismisses Topacio's claim for damages from the wrongful attachment.

Issue:

• (Unlock)

Ruling:

1. The government failed to prove fraud, collusion, or error in the original audit, therefore Topacio cannot be held liable for the alleged shortage.
2. Topacio is entitled to reimbursement for travel expenses and u...(Unlock)

Ratio:

• Before a new balance stated by the Insular Auditor can be considered as prima facie verity, the government must prove that the original audit was infected with fraud, collusion, or error, or that new and material evidence has been discovered to vitiate the original statement.

• There is no evidence of fraud or collusion on Topacio's part in relation to the alleged shortage.

• The practice of accepting certificates of dispatching officers as proof of property dispatch, although irregular, had been followed with the knowledge and consent of the auditors.

• Therefore, the government is not entitled to judgment based on the new balance stated by the auditor.

• Topacio is entitled to reimbursement for travel expenses and unpaid salary.

• Despite not reporting for duty upon the suggestion of his Department Head, Topacio was prepared to render service and was kept from performing his duties by superior authority.

• Therefore, he should be paid the salary he ...continue reading