Title
Cabalit vs. Commission on Audit
Case
G.R. No. 180236
Decision Date
Jan 17, 2012
Three LTO employees were dismissed for tampering vehicle registration receipts to defraud the government. The Supreme Court affirmed their dismissal for dishonesty and gross neglect of duty.

Case Summary (G.R. No. 180236)

Background of the Investigation

The charges stemmed from a report on September 4, 2001, concerning internal financial irregularities at the LTO. COA's Regional Director, Ildefonso T. Deloria, initiated an investigation that uncovered the fraudulent tampering of 106 official receipts between 1998 and 2001. The employees involved altered amounts reported, pocketing the difference and reporting lower fees, leading to unreported income totaling P169,642.50.

Procedural History

Following the audit findings, COA's Regional Cluster Director, Atty. Roy L. Ursal, referred the case to the Deputy Ombudsman, where formal charges of dishonesty were filed against the implicated employees. Each employee presented counter-affidavits denying knowledge of the fraudulent activities, with claims of varying degrees of ignorance about the tampering. The Ombudsman ultimately found them liable for dishonesty, dismissing them from service with accessory penalties including forfeiture of retirement benefits and bar from future government employment.

Rulings of the Court of Appeals

Petitioners appealed to the CA, which upheld the Ombudsman's decision but modified it regarding Olaivar, finding him liable for gross neglect of duty rather than dishonesty. The CA noted that the continuous signing of receipts by Cabalit and Apit implied knowledge of the irregularities, while Olaivar's failure to prevent the anomalies was indicative of his neglect.

Issues Presented by the Petitioners

The main issues raised by the petitioners centered around allegations of procedural due process violations. Cabalit argued that the Ombudsman applied new administrative procedures retroactively, thereby affecting her rights. Apit contended that the CA erroneously dismissed his defense as mere denial, and Olaivar argued against the finding of gross negligence, asserting he relied on his subordinates.

Resolution of Due Process Claims

The Supreme Court addressed the procedural issues, emphasizing that the investigation allowed for ample opportunities to submit evidence, including counter-affidavits and position papers. The Court ruled that the petitioners were not denied due process, affirming the application of the amended administrative orders, maintaining that procedural regulations lack vested rights and can be applied retroactively.

Liability Findings and Evidence Consideration

The Court affirmed findings of fact that established Cabalit and Apit’s roles in the tam

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