Title
Labatagos vs. Sandiganbayan
Case
G.R. No. 71581
Decision Date
Mar 21, 1990
A university cashier was convicted of malversation after audits revealed unremitted public funds, with her defenses rejected due to lack of evidence.
malversation of public funds
audit examination
unremitted funds
A

Case Summary (G.R. No. 71581)

Factual Background

Petitioner filed a leave of absence for March, April and May 1978 and did not discharge her duties during those months. On 1 October 1980, Francisco T. Rivera, designated leader of the COA examination team under COA General Order No. 8022-117 (Exh. C), conducted an examination of petitioner’s cash and accounts. During the examination, petitioner did not have cash in her possession, and the team required her to produce her records, books of collection, copies of official receipts and remittance advices, and monthly reports of collections.

The audit results showed discrepancies between petitioner’s collections and remittances to the Development Bank of the Philippines (DBP), the university’s depository bank. For the period January to August 1978, the examination disclosed collections totaling P113,205.58 (Exhs. A-1 and A-2). Petitioner remitted P78,868.69, leaving an alleged unremitted balance of P34,336.19. For the period January 1979 to June 6, 1980, the examination disclosed collections totaling P327,982.00 (Exhs. B, B-1, and B-1-a). Petitioner remitted P256,606.25 (Exhs. B-2 and B-2-a), resulting in a shortage of P71,365.75.

Material to the prosecution’s theory, petitioner signed without exception both Reports of Examination—Exhs. A and B—and their supporting summaries. After Rivera submitted his report to the Chairman, COA, through the Regional Director, COA, Region IX (Exhs. A-4 and B-4), he prepared demand letters corresponding to the two audit reports (Exhs. A-3 and B-3). Rivera served these letters personally on petitioner, who signed them. Despite the demands, petitioner allegedly did not submit any explanation of her shortages.

Information Filed and Theory of the Charge

On 27 October 1981, the Tanodbayan filed the information with the Sandiganbayan charging petitioner with malversation of public funds, alleging that as a public officer who, by reason of her office, was tasked with collecting school dues and tuition fees and remitting the collections to the DBP depository, petitioner was responsible and accountable for the funds collected and received. The information alleged that petitioner wilfully, unlawfully, feloniously, and fraudulently, and with grave abuse of confidence, misappropriated and embezzled the total amount of P105,711.94 out of her collection of P441,187.58, causing damage and prejudice to the Republic of the Philippines.

Defense and Trial Position

During trial, petitioner invoked several defenses. First, she claimed that she signed the audit reports and statements of collections and deposits under the understanding that her shortage would amount to only P2,000.00. Second, she argued that she could not be held accountable for collections for March, April and May 1978 because she was on maternity leave. Third, she contended that several disbursements totaling P49,417.12 were not credited to her by the auditors.

Petitioner also asserted that she should not be held accountable for alleged misappropriations between January 1978 and August 1978 in the amount of P34,336.19, because those who took the amount were her superiors and the amounts taken were allegedly properly receipted, though the receipts were supposedly lost.

Ruling of the Sandiganbayan

The Sandiganbayan rejected petitioner’s defenses and found her guilty beyond reasonable doubt. It held that petitioner’s claim that she signed the audit report believing the shortage would be only P2,000.00 was contradicted by the figures reflected on the documents she signed. Exh. A, which petitioner signed without exception, showed a shortage of P34,336.19 for the period from January to August 1978, and Exh. A-1, the statement of collections and deposits certified by petitioner as correct, reflected the same shortage.

As to the maternity leave period, the Sandiganbayan considered the prosecution’s rebuttal witness Mrs. Ester Guanzon, who testified that she assisted petitioner in collecting fees; that petitioner applied for maternity leave in March 1978 but continued reporting for work that month; that petitioner did not report for work in April 1978; and that Guanzon collected the fees in her stead. Guanzon explained that she turned over all collections to petitioner whenever she assisted her, and that even during April 1978 when petitioner was physically absent, Guanzon turned over collections to petitioner in petitioner’s house together with duplicate copies of receipts Guanzon issued, which petitioner signed after verifying that the amounts tallied with the receipts. The Sandiganbayan found Guanzon’s explanation to have “color of truth.”

The Sandiganbayan further held that collections for March and April 1978 were fully accounted for. It noted that these collections were itemized in the reports of collections (Exhs. F and G) and shown as duly remitted in the remittance advices for those months (Exhs. F-1 to F-5; G-1 and G-2). It sustained the auditors’ refusal to credit petitioner with three sums mentioned in petitioner’s letter dated October 22, 1980 (Exh. 5). The first sum, P7,140.20, allegedly representing refunds of tuition fees granted tuition privileges, lacked official authorization from university authorities, and the supposed list of students for the refunds (Exh. 10) was treated as incompetent because it was an uncertified xerox copy.

The second sum, P4,494.80, allegedly spent for uniforms of players and basketball balls (Exhs. 6 and 6-A), and the balance allegedly taken by Alikhan Marohombsar and Auditor Casan (Exh. 6-B), was not credited because it was unsupported by a duly accomplished and approved voucher. The third amount, P6,702.12, allegedly covered by vouchers submitted through Rosa Cabiguin (Exh. 12-K), was also not credited because the vouchers were not presented in evidence and no effort was exerted to compel their production in court by subpoena duces tecum. The Sandiganbayan also stated that other sums petitioner alleged had been taken from her by Director Osop, Alikhan Marohombsar, and Auditor Casan totaling P31,070.00 were not valid disbursements. It emphasized that these were supported by mere pieces of paper and, despite Director Osop’s admission of signing some documents (such as Exhs. 12-A, 12-D, 12-E, 12-F, and 12-I), responsibility to account still rested on petitioner as the accountable officer. The Sandiganbayan relied on the principle that malversation involves not only misappropriation or conversion of public funds but also knowingly allowing others to make use of or misappropriate them.

The Parties’ Contentions Before the Supreme Court

Petitioner sought review on certiorari and contended that the Sandiganbayan (1) made manifestly mistaken inferences and misapprehended the significance of evidence, resulting in an erroneous decision; and (2) erred in finding her guilty where, according to petitioner, the evidence showed she did not use the missing funds for personal benefit.

The petition was anchored on an attack on the sufficiency and appreciation of evidence, but the Supreme Court framed the controlling inquiry as whether petitioner’s guilt was proven beyond reasonable doubt, as that was the ultimate requirement for conviction in a criminal case.

Legal Basis and Reasoning

The Court held that there was no reversible error in the Sandiganbayan’s questioned decision. It treated the petition as largely raising issues that were essentially factual, particularly the credibility and evaluation of the documentary audit evidence and the probative value of petitioner’s explanations and claimed disbursements.

The Court sustained the Sandiganbayan’s factual determinations that petitioner’s shortages were documented in the audit reports and in the statement of collections and deposits she certified as correct. It upheld the finding that petitioner’s asserted understanding regarding a smaller shortage was inconsistent with the amounts appearing in the exhibits she signed without exception. It also approved the Sandiganbayan’s treatment of petitioner’s maternity leave claim, citing the rebuttal testimony that collections during the relevant months had been accounted for and remitted, with turn-over and verification procedures allegedly undertaken by Guanzon and petitioner.

On petitioner’s attempt to shift accountability through claimed disbursements, the Court accepted the Sandiganbayan’s evaluation that the claimed refunds and expenditures were

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