Title
Al-Amanah Islamic Investment Bank of the Philippines vs. Civil Service Commission
Case
G.R. No. 100599
Decision Date
Apr 8, 1992
Bank manager approved 13 unauthorized withdrawals, causing P597K loss; prior neglect conviction ignored. SC ruled grave misconduct, ordered dismissal with forfeiture of benefits.

Case Summary (G.R. No. 234636)

Facts of the Case

Malbun faced formal charges stemming from transactions conducted between January 28, 1986, and September 5, 1986, which were described as irregularities involving the encashment of commercial checks without sufficient funds backing them. An Investigating Committee was formed, which concluded that, while Malbun did not benefit from these transactions, he was guilty of neglecting his duties as he failed to exercise the requisite diligence expected from a bank manager. Notably, he had approved numerous transactions that exceeded the authorized limits of the branch cashier, who facilitated the unauthorized withdrawals.

Findings of Administrative Bodies

The findings from the Investigating Committee were upheld by the Philippine Amanah Bank’s Board of Directors, which concluded that Malbun was guilty of neglect of duty and determined a penalty of forced resignation without prejudice to reinstatement. After appealing to the Merit Systems Protection Board (MSPB), Malbun was found guilty of neglecting duty and was subjected to a six-month suspension. However, the CSC later reclassified these findings, declaring Malbun guilty of grave misconduct and conduct prejudicial to the best interest of the service, notably considering his responsibility as a bank manager.

CSC's Memorandum Circular Provisions

The relevant disciplinary regulations are outlined in CSC Memorandum Circular No. 8, which categorizes "Neglect of Duty" as a light offense and stipulates penalties for more severe offenses such as grave misconduct. The CSC acknowledged mitigating circumstances related to Malbun’s length of service and first offense but emphasized the aggravating circumstance of abuse of confidence due to the financial losses incurred by the bank.

Legal Analysis

The Court noted that the allegations against Malbun reflected not mere negligence but gross neglect of duty, as the irregularities resulted in substantial financial loss to the bank. Furthermore, the previous administrative offenses by Malbun were ruled significant for sentencing, as they display a pattern of behavior that contradicts the expectations required of senior bank management. Despite his claim of acting in good faith and possessing mitigating circumstances of lengthy service and first offense, these considerations were outwei

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