G.R. No. L-8922-24 - People vs. Enguero

PAG-IBIG Fund, represented by Marietta B. Britanico (Regional Manager in Legazpi City), initiated administrative proceedings against Manuel L. Arimado, Sheriff IV of RTC Branch 4, Legazpi City.
The complaint charged respondent with amusfeasance and malicious nonfeasance in office based on actions tied to a real estate mortgage foreclosure.

PAG-IBIG executed an extrajudicial foreclosure of a real estate mortgage on the property of Venus Rosauro.
The property was sold at a public auction held on January 14, 2000, where the highest bidder, Fidel See, paid a bid price of P272,000.00.
Respondent received this payment on the day of the auction, issued a receipt, and deposited the amount with the Office of the Clerk of Court but subsequently withdrew the funds on the understanding that he would deliver the amount to PAG-IBIG.

As the period for redemption lapsed without the mortgagor exercising his right, Fidel See pursued possession of the property by filing a complaint for specific performance, which involved PAG-IBIG and the respondent.
On or about October 15, 2001, during the pendency of this case, a Compromise Agreement was forged between See, PAG-IBIG, and the respondent:

Respondent Manuel L. Arimado acknowledged his unauthorized personal use of the bid price amount.
He acknowledged that the money was, in fact, intended for PAG-IBIG to satisfy its mortgage claim.
Arimado committed to pay PAG-IBIG cash P272,000.00 on or before October 31, 2001 for full settlement of the claim, with an additional P28,000.00 to cover litigation expenses.

The Regional Trial Court, Branch 3 in Legazpi City, approved the compromise by decision on October 31, 2001.

The administrative complaint was filed after it became apparent that the respondent failed to remit the necessary amount to PAG-IBIG as agreed under the Compromise Agreement.
In his September 9, 2005 comment, respondent claimed:

He had prepared the Certificate of Sale and made an effort to deliver the funds, but PAG-IBIG allegedly did not accept them for no apparent reason.
He deposited the money with the Clerk of Court for safekeeping.
Faced with a personal financial crisis, including urgent hospital expenses for his ailing wife, he resorted to using the funds, despite his awareness of the ethical implications of his actions.
He also mentioned that although his request to pay in installments was initially approved by the PAG-IBIG Regional Office, the process was later obstructed when his first installment payment was rejected.

The Office of the Court Administrator (OCA) evaluated the case and recommended respondent’s dismissal for dishonesty, along with:

Forfeiture of all benefits except accrued leave credits.
Perpetual disqualification from reemployment in government service, including positions in government-owned and controlled corporations.

The decision noted that respondent’s conduct undermined public confidence in judicial institutions tasked with upholding propriety and ethical standards.
His record showed prior incidences of administrative sanctions, including multiple suspensions for misconduct:

Suspension for simple misconduct in a case involving receipt of P10,000.00 under misleading assurances.
A one-month suspension in a case where funds for preliminary attachment expenses were mishandled.
A two-month suspension for misappropriating P2,500.00 in another criminal complaint-related matter.

Whether Manuel L. Arimado misappropriated the funds meant for PAG-IBIG by withdrawing and using the auction proceeds.
Whether the forged Compromise Agreement, wherein Arimado acknowledged personal use of the funds yet committed to reimbursement, constitutes sufficient evidence of dishonesty and nonfeasance.
To what extent does the respondent’s financial justification and claim of exigency (i.e., the urgent hospital expenses and financial hardship) mitigate or exacerbate his administrative liability.
Whether the repeated instances of misconduct in his record contribute to aggravating his disqualification and dismissal from public service.