In Marquez v. Ovejera, the Supreme Court clarified the extent of disclosure required in the Statement of Assets, Liabilities, and Net Worth (SALN) for public officials. The Court ruled that public officials must declare not only the principal amount of investments but also any accrued interest. This ruling underscores the importance of transparency and full disclosure in public service, reinforcing the ethical standards expected of government employees.

Unveiling Hidden Gains: When a Sheriff’s SALN Sparked Scrutiny

This case arose from an administrative complaint filed against Judge Venancio M. Ovejera and Sheriff IV Lourdes E. Collado. While the initial complaint involved allegations of abuse of authority and disregard of due process, the focus shifted to Collado’s failure to fully disclose her assets in her SALN. Specifically, the issue revolved around time deposits with the Moncada Women’s Credit Corporation (MWCC) and whether Collado adequately reported the accrued interest on these deposits.

The complainants alleged that Collado violated Republic Act No. 6713 (RA 6713), also known as the “Code of Conduct and Ethical Standards for Public Officials and Employees,” by not disclosing certain time deposits in her SALN for the years 2004 and 2005. These time deposits included amounts such as P200,100.00, P300,100.00, P400,100.00, P500,100.00, P600,100.00 and P800,100.00 invested at various times. Collado admitted to declaring the initial capital but not the accrued interest, believing that the interest only needed to be declared upon conversion of the time deposits to cash.

The Office of the Court Administrator (OCA) initially investigated the matter and recommended re-docketing the case as a regular administrative case. The case was then referred to the Executive Judge of the Regional Trial Court (RTC) for further investigation. The Executive Judge recommended the dismissal of the complaint, finding that Collado had declared the initial capital and had no intent to falsify her SALN. However, the OCA later found that Collado had also failed to submit her SALN for the years 2000 and 2001, based on a certification from the Office of Administrative Services (OAS).

The Supreme Court then had to determine whether Collado should be held administratively liable for violating the provisions on SALN submission. The Court focused on Section 8 of RA 6713, which mandates full disclosure of all assets, including investments, cash on hand or in banks, stocks, bonds, and the like. The critical question was whether the accrued interest on the time deposits fell within the scope of “all other assets” that must be declared.

The Court emphasized that the requirement of SALN submission is crucial for curtailing corruption and maintaining honesty in public service. By requiring full disclosure, the public can monitor the affluence of public officials and verify their undisclosed properties or sources of income. The Supreme Court referenced its stance on SALN requirements as a mechanism against corruption, quoting:

Verily, the requirement of SALN submission is aimed at curtailing and minimizing the opportunities for official corruption, as well as at maintaining a standard of honesty in the public service. With such disclosure, the public would, to a reasonable extent, be able to monitor the affluence of public officials, and, in such manner, provides a check and balance mechanism to verify their undisclosed properties and/or sources of income.

The Court found that Collado’s failure to disclose the accrued interest in her SALN for 2004 and 2005 constituted a violation of Section 8 of RA 6713. Although she declared the original amount of the time deposits, she did not disclose the additional income generated from the interest. Therefore, she did not fully comply with the legal requirement of declaring all assets.

However, the Court also addressed the OCA’s finding that Collado failed to submit her SALN for the years 2000 and 2001. The Court held that it could not hold Collado administratively liable for this omission because she was not given an opportunity to be heard on this matter. This highlights the importance of due process in administrative proceedings.

Regarding the appropriate penalty, Section 11 of RA 6713 provides for a fine not exceeding the equivalent of six months’ salary, depending on the gravity of the offense. The Court, citing existing jurisprudence, imposed a fine of P5,000.00. This decision was influenced by the fact that this appeared to be Collado’s first offense and that there was no evidence of bad faith or fraudulent intent.

The Supreme Court determined the penalty in this case and invoked Section 11 of RA 6713:

Any public official or employee, regardless of whether or not he holds office or employment in a casual, temporary, holdover, permanent or regular capacity, committing any violation of this Act shall be punished [with, among others,] a fine not exceeding the equivalent of six (6) months’ salary x x x depending on the gravity of the offense after due notice and hearing by the appropriate body or agency.

The Court also dismissed the allegations that Collado violated the Anti-Money Laundering Act (AMLA), as there was no substantial basis for this claim. Similarly, the complaint against Judge Ovejera was dismissed for lack of evidence. The dismissal of AMLA allegations underscore the high burden of proof required to substantiate such serious claims.

FAQs

What was the key issue in this case?	The key issue was whether a public official’s failure to disclose accrued interest on time deposits in their SALN constitutes a violation of Republic Act No. 6713. The court ruled that such omission does violate the law.
What is a SALN?	SALN stands for Statement of Assets, Liabilities, and Net Worth. It is a document that public officials and employees are required to file under oath, disclosing their assets, liabilities, and net worth, as well as those of their spouses and unmarried children under 18 years of age living in their households.
Why are SALNs required?	SALNs are required to promote transparency and accountability in public service. They help to curtail corruption by allowing the public to monitor the financial interests and wealth of public officials.
What assets must be disclosed in a SALN?	Public officials must disclose all real and personal properties, including investments, cash on hand or in banks, stocks, bonds, and other similar assets. This includes the acquisition cost, assessed value, and current fair market value of real properties.
What was the Court’s ruling on Collado’s failure to disclose interest?	The Court ruled that Collado’s failure to disclose the accrued interest on her time deposits in her SALN for 2004 and 2005 constituted a violation of Section 8 of RA 6713. This established that such omission is administratively liable.
What penalty did Collado receive?	The Court imposed a fine of P5,000.00, which was to be deducted from her retirement benefits, considering her compulsory retirement on June 11, 2011. This penalty took into account that this was her first offense and that there was no evidence of bad faith.
What happened to the other charges against Collado?	The Court dismissed the charges that Collado violated the Anti-Money Laundering Act (AMLA) due to a lack of substantial basis. The Court also refused to consider claims that Collado failed to submit her SALN for years she was not noticed regarding the deficiency.
What was the outcome for Judge Ovejera?	The administrative complaint against Judge Venancio M. Ovejera was dismissed due to a lack of supporting evidence. This highlights that proper evidence is important in administrative cases.

The Marquez v. Ovejera case serves as a reminder of the importance of adhering to ethical standards in public service. The Supreme Court’s decision emphasizes that public officials must be transparent and fully disclose their assets, including accrued interest on investments, in their SALNs. This ruling reinforces the principle that public office is a public trust, requiring the highest standards of honesty and integrity.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: ANGELITO R. MARQUEZ et al. VS. JUDGE VENANCIO M. OVEJERA, A.M. No. P-11-2903, February 05, 2014