Punishment for Malversation by Public Officers

Act No. 1740 is enacted to punish public officers and employees who commit or facilitate malversation involving public funds or property or trust or other funds required to be kept or deposited.

Section 1 covers any bonded officer or employee of the Insular Government, any provincial or municipal government, the City of Manila, and any other person who has charge by reason of office or employment.
Section 1 applies to persons who, by reason of their office or employment, have charge of Insular, provincial, or municipal funds or property, the funds or property of the City of Manila, or trust or other funds required by law to be kept or deposited.
Section 1 covers liability for: (1) failure or refusal to account, (2) making personal use, (3) abstracting, (4) misappropriating, (5) any malversation, and (6) permitting others to do any of these through abandonment, fault, or negligence.

Section 1 punishes a covered person who fails or refuses to account for the funds or property in their charge.
Section 1 punishes a covered person who makes personal use of public funds or property, or any part thereof.
Section 1 punishes a covered person who abstracts or misappropriates the funds or property, or any part thereof.
Section 1 punishes a covered person who is guilty of any malversation with reference to the funds or property.
Section 1 punishes a covered person who, through abandonment, fault, or negligence, permits any other person to abstract, misappropriate, or make personal use of the funds or property.

Section 1 provides that, upon conviction, the offender is punished by imprisonment for not less than two months nor more than ten years.
Section 1 provides that, in the discretion of the court, a fine of not more than the amount of such funds and the value of such property may be imposed.
Section 1 ties the sanction to the amount of the funds and the value of the property involved.

Section 2 provides that in prosecutions under Section 1, the absence of the public funds or property in question is deemed prima facie evidence of personal use or personal ends by the accused.
Section 2 provides that failure or inability to produce all funds and property on demand by an officer authorized to examine or inspect the accused, office, treasury, or depositary is deemed prima facie evidence that the missing funds or property were put to personal uses or used for personal ends.
Section 2 treats the above evidentiary presumption as applying within the prosecutions for violations of the preceding section.

Section 3 provides that every person convicted under Act No. 1740 is ipso facto forever disqualified from holding any public office or employment of any nature whatever within the Philippine Islands.

Section 4 repeals Articles 390, 391, and 392 of the Penal Code of the Philippine Islands only to the extent they conflict with Act No. 1740.
Section 4 limits the repeal to conflict situations; the repeal is to that extent only.

Section 5 provides that the public good requiring speedy enactment authorizes expedited passage under Section 2 of the Act prescribing the order of procedure by the Commission in the enactment of laws, passed September 26, 1900.