A.M. No. 02-1-66-RTC - Re: Report on the Ficial Audit Conducted in the RTC, Branch 34, Balaoan, La Union

Appointed as Clerk of Court on March 1, 1991, Atty. Marron was also concurrently assigned the roles of cashier and disbursement officer.
His duties involved the collection and receipt of payments for various legal fees, which included contributions to several designated funds such as:

In August 1999, Atty. Marron went on official leave; however, he failed to report back as scheduled.
Due to his extended absence without leave, an administrative complaint was filed against him.
On June 28, 2000, the Court initially resolved to dismiss him from service, a decision later held in abeyance following the intervention of the Office of the Court Administrator (OCA).
In the interim, Judge Senecio O. Tan designated Messrs. Virgilio S. Sarmiento and Jesus O. Javier as successive collection officers of RTC, Branch 34.

A financial audit was conducted by the Court Management Office, Office of the Court Administrator (CMO-OCA), covering the period from May 26, 1990 to August 31, 2001.
The audit report revealed discrepancies in Atty. Marron’s remittances compared to his actual collections:

For the Sheriff General Fund (SGF): Total collections amounted to P2,402.00, but remittances were only P2,210.00, resulting in a shortage of P192.00.
For the Judiciary Development Fund (JDF): Total collections of P190,656.60 versus remittances of P185,269.05, leading to a shortage of P5,387.55.

In addition, while Atty. Marron was absent from work from August 1999 onward, he withdrew fiduciary fund collections amounting to P626,747.00 from the Land Bank of the Philippines, as evidenced by a detailed schedule of deposits and withdrawals.
Some documents purportedly in his custody were missing, prompting reliance on available cash books, subsidiary ledgers submitted to the OCA Revenue Section, and records from the Commission on Audit for computing the shortage.

On January 29, 2002, the Court en banc issued a resolution noting the findings of the financial audit and directed Atty. Marron to:

Restitute the shortages identified in the SGF and JDF.
Submit validated slips as proof of remittances.
Account for the unauthorized withdrawals from the Fiduciary Fund totaling P626,747.00.

The same resolution admonished Presiding Judge Senecio O. Tan for supervisory lapses and advised Officer-in-Charge Jesus O. Javier to strictly adhere to Supreme Court Circulars regarding judiciary funds.
A hold departure order was issued to prevent Atty. Marron from leaving the country.
The case was referred to the Legal Office of the OCA for filing appropriate administrative and criminal charges.
An administrative complaint was filed on September 3, 2002, and a criminal complaint was initiated on November 7, 2002, with subsequent notifications and opportunities given to Atty. Marron to file a comment or counter-affidavit.
Despite these measures and ample opportunity to respond, Atty. Marron neither filed his comment nor restituted the alleged shortages, while other criminal cases against him continued to be pending.

Whether Atty. Marron, as Clerk of Court and responsible officer, committed acts of gross dishonesty through:

Failing to report back to work after taking official leave without appropriate justification.
Unauthorized withdrawals and mismanagement of court funds, particularly the fiduciary fund.

Whether the discrepancy between collections and remittances for the SGF and JDF, and the unauthorized nature of the withdrawals during his absence, constitute grounds for administrative and criminal liability.
Whether Atty. Marron’s failure to file any counter-affidavit or comment—despite being given ample time—amounts to an admission of guilt.
The extent to which the supervisory failures of the court, including inadequate oversight by Presiding Judge Senecio O. Tan, might affect the accountability of Atty. Marron.
Whether the observed irregularities justify the imposition of the supreme penalty of dismissal from service, forfeiture of retirement benefits, and a ban on future government employment.