G.R. No. 164763 - Perez vs. People

On December 28, 1988, an audit team led by Auditor I Arlene R. Mandin (Commission on Audit, Provincial Auditor’s Office, Bohol) conducted a cash examination of Tubigon municipal funds under Acting Treasurer Zenon R. Perez. Perez was absent; he was radio-messaged and appeared the next day.
The audit counted ₱21,331.79 in Perez’s safe against an expected ₱94,116.36, revealing a shortage of ₱72,784.57. A Report of Cash Examination (Exh. C) and Cash Production Notice dated January 4, 1989 (Exh. D) were served; a separate demand letter (Exh. F) was received January 5, 1989.

Verbally, Perez attributed the shortage to: part payment on his late brother’s loan, family food expenses, and his medicine (TSN June 5, 1990, p. 25). On January 13, 1989, Auditor Mandin recommended criminal action.
Administrative case filed February 13, 1989. Perez’s first Answer (Feb. 22, 1989; Exh. G) admitted application of funds: ~₱30,000 to sibling’s loan, ₱10,000 for toxic goiter treatment, ~₱32,000 for family expenses.

Perez remitted: ₱10,000 and ₱15,000 on January 16; ₱35,000 on February 14; ₱2,000 and ₱2,784 on February 16; and ₱8,000 on April 17, 1989, totaling full restoration of ₱72,784.57 (Exhs. H-1 to H-5).
Perez filed a second Answer (March 2, 1989; Exh. 5-B) denying personal misappropriation, blaming accountable personnel for the retention of funds and noting most amounts were remitted, leaving ₱8,000 to be remitted.

Information filed charging malversation under RPC Art. 217 for misappropriating ₱72,784.57 (G.R. No. 164763). Perez pleaded not guilty on March 1, 1990.
Pretrial set for June 4–5, 1990; defense sought postponement. On June 5, 1990, pretrial was dispensed, and Prosecution witness Mandin testified. Perez testified, revoked his first Answer, presented medical condition (diabetes), and rested October 20, 1990.

On September 24, 2003, the Sandiganbayan convicted Perez of malversation: indeterminate sentence of 10 years+1 day prision mayor to 14 years+8 months reclusion temporal, perpetual special disqualification, and fine of ₱72,784.57.
Motion for reconsideration denied August 6, 2004. Perez appealed September 23, 2004, alleging violation of right to speedy disposition and due process, and unconstitutional cruelty of law and sentence.

Whether the conviction for malversation under RPC Art. 217 was proper given petitioner’s restitution and explanations.
Whether petitioner’s right to speedy disposition of his case and due process was violated by the 12-year delay in decision.
Whether the law penalizing malversation and the imposed sentence amount to cruel and unusual punishment under Const. Art. III, Sec. 19.
Whether the penalty should be modified in view of mitigating circumstances.