G.R. No. 190187 - Philippine Geothermal, Inc. Employees Union vs. Unocal Philippines, Inc.

Domingo G. Panganiban served as the mayor of the Municipality of Sta. Cruz, Laguna from 2004 to 2007 and was re-elected in May 2013.
During his 2004-2007 term, specifically in May 2006, he obtained a cash advance of Php500,000.00 from the municipal treasury for an official travel to Onkaparinga, Adelaide, South Australia, intended to study sustainable environmental projects.

Disbursement Voucher No. 05-372 dated May 17, 2006, signed by the Municipal Accountant, Caridad P. Lorenzo;
Obligation Slip dated May 16, 2006;
Check dated May 17, 2006, prepared by Ronaldo O. Valles, Officer-in-Charge of the Municipal Treasurer’s Office; and
A promissory note executed by petitioner.

The official travel scheduled from June 9 to July 9, 2006, did not push through for undisclosed reasons.

Petitioner instructed the Municipal Accountant Lorenzo to withhold his salary starting July 2006 to liquidate the cash advance, which was duly recorded.
COA State Auditor Rebecca C. Ciriaco, assigned as audit team leader for Laguna local governments in 2006, discovered the unliquidated cash advance during audit, issuing a demand letter on August 15, 2006, stating an unliquidated amount of Php463,931.78 as of August 31, 2006.
The Office of the Deputy Ombudsman for Luzon investigated the matter, noting ongoing salary deductions that reduced the balance to Php256,318.45 by June 2007.

State Auditor Augusto Franco Tria, assigned to the municipality in October 2007, identified the outstanding cash advance and sent a demand letter dated October 10, 2007.
Petitioner explained on October 16, 2007, the agreement to liquidate the amount through salary deductions.
On November 9, 2007, petitioner was certified to have the balance deducted from his terminal leave pay.
Php256,318.45 was deducted from petitioner’s terminal leave pay on November 22, 2007, effectively settling the unliquidated amount.

On November 19, 2007, the Deputy Ombudsman found probable cause to charge petitioner with malversation of public funds for the unliquidated Php463,931.78.
An information charging malversation for the full Php500,000.00 was filed before the Sandiganbayan as Criminal Case No. SB-08-CRM-0031.
Petitioner entered a plea of Not Guilty on June 26, 2009.
The trial ensued with testimonies from prosecution and defense witnesses, and submission of documentary evidence relating to the cash advance, salary deductions, demand letters, and liquidation documents.

On November 18, 2013, the Sandiganbayan convicted petitioner of malversation beyond reasonable doubt, sentencing him to an indeterminate penalty of imprisonment and ordering perpetual special disqualification from public office.
The court considered restitution as a mitigating circumstance but ruled that full payment does not exonerate from criminal liability.
Petitioner filed a motion to reopen the case, which was denied on March 5, 2014.
Petitioner elevated the case to the Supreme Court via a Petition for Review on Certiorari.

Whether petitioner, as municipal mayor, had custody or control of public funds such that he could be held liable for malversation under Article 217 of the Revised Penal Code.

Whether the failure to liquidate the cash advance in a timely manner constituted malversation or another offense under the Revised Penal Code.

Whether the manner and eventual full liquidation of the cash advance by petitioner negated the criminal responsibility for malversation.

Whether the penalty imposed on petitioner was properly determined and in accordance with the Indeterminate Sentence Law.