Case Summary (G.R. No. 71871)
Key Dates (incident and administrative timeline)
July 1, 1983: petitioner encashed two PTA checks in Manila and was robbed en route to Marilao. July 5, 1983: petitioner filed an application for relief from money accountability under Section 638. July 27, 1983: PTA Corporate Auditor indorsed relief. January 17, 1984: COA NCR Regional Director recommended relief and absolved petitioner of negligence. June 29, 1984: COA (Chairman) denied the petition for relief.
Facts of the incident
On July 1, 1983 Hernandez went to the PTA main office in Manila to encash two checks covering employee wages and operating expenses for the Ternate Beach Project. Processing was delayed and cash was available only around 3:00 p.m. Rather than defer encashment to the next working day, Hernandez encashed the checks to enable employees to be paid sooner. He chose to travel to his home in Marilao, Bulacan that afternoon—being closer and, in his judgment, safer—planning to proceed to Ternate the next morning. While on a jeepney along EDSA two assailants boarded, one pointed a knife and the other cut Hernandez’s pocket and took the cash (P10,175.00). Hernandez immediately pursued; he caught and subdued Alvarez after a scuffle, sustaining injuries. Alvarez pleaded guilty; the other robber escaped and the money was not recovered.
Administrative proceedings and COA action
Hernandez filed for relief under Section 638 on July 5, 1983. The PTA General Manager and Corporate Auditor endorsed relief. The COA Regional Director (NCR) recommended relief on January 17, 1984 and absolved Hernandez of negligence. Notwithstanding these endorsements, the COA (through its Chairman) denied relief on June 29, 1984, concluding that the loss was attributable to Hernandez’s negligence.
COA’s reasoning for denial
COA found that Hernandez was negligent because he should have returned immediately to Ternate after encashment and deposited the funds in his office for safekeeping—the normal procedure for handling public funds. COA criticized the decision to encash late in the day and to transmit the money to Marilao rather than to Ternate, holding that he should have deferred encashment to the next working day (July 5). COA also noted that one check (P6,964.00) represented operating expenses rather than wages, undermining the asserted urgency. COA emphasized that the burden of proof in petitions for relief rests with the petitioner, and concluded Hernandez failed to prove the loss was not due to his negligence.
Petitioner’s position and factual defenses
Hernandez maintained he acted reasonably and with good motive: he encashed the checks on a Friday afternoon to avoid delaying payment to employees (weekend days and a holiday would otherwise postpone payment until Tuesday). He chose Marilao because it was nearer and, in his assessment, safer given the late hour and the three-hour trip plus a 30-minute tricycle ride required to reach Ternate. He argued the robbery was a fortuitous, unforeseeable event occurring in broad daylight on a busy highway and that his active pursuit and capture of one robber demonstrated vigilance and a lack of indifference toward the funds.
Positions of the Solicitor General
Solicitor General Sedfrey A. Ordoñez filed a Comment supporting COA’s denial, asserting Hernandez’s negligence. Subsequently, Solicitor General Francisco I. Chavez submitted a Manifestation in Lieu of Memorandum siding with Hernandez, agreeing that Hernandez was not negligent or, alternatively, that any contributory negligence was offset by his prompt, risky efforts to recover the money and the capture of one assailant.
Legal standard under Section 638 and P.D. No. 1445
Section 638 requires an accountable officer who suffers loss of government funds in transit or by theft to immediately notify the Auditor General (or provincial auditor) and to submit an application for relief with available evidence within thirty days (or a longer period allowed). Failure to comply bars relief. P.D. No. 1445 (Section 73) reiterates the provision. The statutory framework places the burden on the petitioner to establish that the loss did not result from his negligence and otherwise me
...continue readingCase Syllabus (G.R. No. 71871)
Facts of the Case
- At the time of the incident, Teodoro M. Hernandez was officer-in-charge and special disbursing officer of the Ternate Beach Project of the Philippine Tourism Authority in Cavite.
- On July 1, 1983, Hernandez went to the main office of the Authority in Manila to encash two checks covering employees' wages and the operating expenses of the Project.
- He estimated the money would be available by 10:00 a.m. and expected to be back in Ternate by about 2:00 p.m.; processing was delayed and completed only at about 3:00 p.m.
- Despite the delay, Hernandez encashed the checks because employees would be waiting for their pay the following day; he believed waiting until the main office reopened (Tuesday) would unduly delay payment.
- After encashment (a little past 3:00 p.m.), he took a passenger jeep bound for his house in Marilao, Bulacan, intending to spend the night there and proceed to Ternate the next morning.
- Two persons boarded the jeep along Epifanio de los Santos Avenue; one pointed a knife at Hernandez while the other slit his pocket and forcibly took the money he was carrying; the two assailants then jumped out and ran.
- Hernandez pursued the assailants, caught up with and overcame Virgilio Alvarez after a scuffle; Hernandez sustained injuries to his lip, arms, and knees.
- Alvarez was subsequently charged with robbery and pleaded guilty; the other assailant remained at large and the stolen money was not recovered.
- The amount lost under Hernandez's accountability was stated as P10,175.00; one of the checks encashed, in the greater amount of P6,964.00, was for operating expenses rather than salaries and wages.
Chronology of Relevant Dates and Events
- June 29, 1983: Vouchers representing the checks had been prepared (as referenced in the Commission on Audit's memorandum).
- July 1, 1983: Hernandez went to encash checks; processing completed about 3:00 p.m.; robbery occurred the same afternoon.
- July 2–3, 1983: Non-working days following July 1; July 4 was a holiday, making the next working day July 5, 1983.
- July 5, 1983: Hernandez filed a request for relief from money accountability under Section 638 of the Revised Administrative Code; the General Manager of the Philippine Tourism Authority indorsed the request the same day.
- July 27, 1983: Corporate Auditor of the Philippine Tourism Authority indorsed the request.
- January 17, 1984: Regional Director, National Capital Region, Commission on Audit recommended relief and absolved Hernandez of negligence.
- June 29, 1984: Commission on Audit, through Chairman Francisco S. Tantuico, Jr., denied the request for relief.
- November 6, 1989: Supreme Court decision (G.R. No. 71871) granting the petition.
Procedural History and Administrative Recommendations
- Hernandez filed an application for relief from money accountability under Section 638 after the robbery.
- The General Manager of the Philippine Tourism Authority indorsed the application on the same day it was filed (July 5, 1983).
- The Corporate Auditor indorsed the request on July 27, 1983.
- The Regional Director, National Capital Region, Commission on Audit, recommended relief on January 17, 1984, and absolved Hernandez of negligence.
- Despite earlier favorable administrative recommendations, the Commission on Audit (COA) through its Chairman denied the request on June 29, 1984.
Commission on Audit's Decision and Rationale
- The COA denied Hernandez's request for relief from accountability.
- COA attributed the loss of P10,175.00 to Hernandez's negligence, reasoning that:
- Had Hernandez brought the cash proceeds immediately to the Beach Park in Ternate for safekeeping in his office (the normal procedure for handling public funds), the robbery could have been averted.
- Hernandez should not have encashed the checks on July 1 because the hour was late and he knew he could not return to Ternate before nightfall; he should have deferred encashment until the next working day (July 5, 1983).