Case Summary (G.R. No. 36701)
Petitioner and Respondent
Petitioner: Manuel M. Venezuela
Respondent: People of the Philippines
Key Dates
- Audit Period: December 4, 1997 to June 10, 1998
- Information Filed: March 20, 2000
- Sandiganbayan Decision: May 10, 2012; Resolution Denying Reconsideration: February 4, 2013
- Supreme Court Decision: February 14, 2018
Applicable Law and Constitution
- 1987 Philippine Constitution
- Revised Penal Code, Article 217 (as amended by RA No. 10951)
- Rule 45, Revised Rules of Court
Audit Investigation and Findings
The COA team discovered a joint shortage of ₱2,872,808.00 in the accounts of Venezuela and Costes, identified 17 cash advances by Venezuela lacking required purpose statements, supporting documents, approved resolutions and certifications, and noted that Venezuela was neither bonded nor authorized to receive advances. Payments exceeding ₱1,000.00 were improperly made in cash.
Demand and Admission
State Auditor Ruiz issued demand letters for liquidation. Venezuela admitted liability for ₱943,200.00 and denied the balance. He disputed the subsequent COA audit report.
Charges and Trial
The Office of the Deputy Ombudsman filed an Information for Malversation under Article 217, RPC. Venezuela surrendered on May 11, 2000, posted bail, and sought reconsideration and reinvestigation, which were denied. Trial proceeded solely against him; key prosecution witnesses were Auditor Ruiz and Municipal Accountant Marita Laquerta.
Evidence Presented by Prosecution
Prosecution established (i) the ₱2,872,808.00 shortage, (ii) unauthorized advances, (iii) Venezuela’s lack of bonding and authority, and (iv) demand letters. Laquerta confirmed signatures on vouchers and that only ₱300,000.00 was liquidated.
Defense’s Evidence and Claims
Venezuela denied wrongdoing, claiming full liquidation via official receipts dated November–December 1999. Witnesses Caparas and Ferrer testified to submission of liquidation documents, though Ferrer conceded he did not directly observe the payments.
Rebuttal Evidence on Receipts
The Municipal Treasurer’s Office and Municipal Accountant contradicted the receipts: they bore serial numbers matching 2007 issues, were issued to others for different purposes, and Costes was not in office at the dates indicated. COA had no record of such payments beyond ₱300,000.00.
Sandiganbayan Decision
The Sandiganbayan found all elements of malversation proved beyond reasonable doubt, discredited the payment defense, and recognized the ₱300,000.00 refund as a mitigating circumstance. Venezuela was sentenced to ten years and one day to seventeen years, four months and one day of imprisonment, a fine of ₱2,572,808.00, and perpetual special disqualification.
Issues on Appeal
Venezuela argued (i) guilt not proven, (ii) valid payment proof, (iii) mischarge under Article 217 instead of Article 218, and (iv) improper lone prosecution without co-conspirator Costes. The People maintained proof of malversation, correct charge, and that demand or co-accused presence was unnecessary.
Appellate Jurisdiction and Standard of Review
Under Rule 45, the Supreme Court’s review is limited to questions of law; factual findings and credibility assessments by the Sandiganbayan are conclusive.
Definition and Elements of Malversation
Article 217, RPC defines malversation as a public officer’s misappropriation or failure to account for public funds. Elements: (i) public office, (ii) custody or control of funds, (iii) accountability, and (iv) appropriation, misappropriation, or failure to account.
Proof of Malversation in This Case
Venezuela, as mayor, was an accountable officer who received ₱2,872,808.00 in advances and failed to return or satisfactorily explain ₱2,572,808.00 upon demand, creating a prima facie presumption of personal use.
Rejection of Payment Defense
Reimbursement is not a defense in malversation; valid only to mitigate civil liability. Venezuela’s receipts were invalidated by serial-number and employment records. Only ₱300,000.00 was proven and credited as mitigation.
Demand Not Essential
Demand serves to raise a presumption of misappropriation but is not an element
...continue readingCase Syllabus (G.R. No. 36701)
Antecedents
- Manuel M. Venezuela served as Municipal Mayor of Pozorrubio, Pangasinan from 1986 to June 30, 1998.
- On June 10, 1998, a COA audit team (Auditors Ruiz, Llarenas, Austria) examined joint accounts of Treasurer Pacita Costes and Mayor Venezuela for December 4, 1997 to June 10, 1998.
- The audit revealed a shortage of ₱2,872,808.00 and 17 unauthorized cash advances lacking required vouchers, approvals, and supporting documents.
- Auditors found Venezuela neither bonded nor authorized to receive advances; most payments were made in cash in violation of COA rules.
- Demand letters from Auditor Ruiz prompted Venezuela to admit ₱943,200.00 liability but deny the balance; an audit report was submitted and contested.
- On March 20, 2000, the Office of the Deputy Ombudsman filed Information charging Venezuela (and Costes) with malversation of public funds (Art. 217, RPC).
- Warrant of arrest issued May 3, 2000; Venezuela surrendered, posted bail; Costes remained at large.
- Venezuela’s motion for reinvestigation denied; trial proceeded solely against him.
Facts at Trial
- State Auditor Ruiz testified to the ₱2,872,808.00 shortage, illegal advances, lack of bonding, and issuance of demand letters; Venezuela admitted partial liability.
- Municipal Accountant Laquerta identified Venezuela’s signatures on 16 of 17 vouchers and confirmed only ₱300,000.00 was remitted in November 1998.
- Defense evidence: Venezuela, his assistant (Caparas), and bookkeeper (Ferrer) claimed full liquidation and presented official receipts dated late 1999.
- Caparas and Ferrer asserted submission of liquidation documents but Ferrer admitted not personally witnessing the transactions.
- Rebuttal: Officer-in-Charge Costales and Laquerta testified that receipts were invalid—issued to other payees for different purposes in 2007, and Costes was no longer treasurer when dated.
Sandiganbayan Decision
- Promulgated May 10, 2012 by Third Division in Criminal Case No. 25963.
- Found all elements of malversation beyond reasonable doubt: Venezuela as public officer, custody of funds, accountability, and failure to liquidate ₱2,572,808.00 upon demand.
- Discredited defense receipts for invalid serials, wrong payees, absence in municipal records, and Costes’s non-incumbency.
- Held that reimbursement is not