The Importance of Diligence in SALN Declarations to Avoid Administrative Liability

Office of the Deputy Ombudsman for Luzon v. Hurley D. Salig, G.R. No. 215877, June 16, 2021

Imagine waking up one day to find that your career and reputation are at risk due to an oversight in a routine administrative task. This is the reality that Hurley D. Salig faced when he was accused of misconduct and dishonesty over his Statement of Assets, Liabilities, and Net Worth (SALN) declarations. The Supreme Court’s ruling in his case underscores the critical need for public officials to be meticulous in their SALN submissions to avoid severe penalties.

Hurley D. Salig, a government employee in the Department of Environment and Natural Resources (DENR), found himself in a legal battle after an anonymous complaint alleged that he had amassed wealth disproportionate to his income. The complaint led to an investigation by the Office of the Ombudsman, which initially found Salig guilty of grave misconduct and dishonesty due to discrepancies in his SALN. The central legal question was whether Salig’s failure to fully disclose his assets constituted misconduct and dishonesty warranting dismissal from service.

Legal Context: Understanding SALN and Misconduct

The SALN is a crucial document required of all public officials and employees in the Philippines. It serves as a tool for transparency and accountability, ensuring that public servants do not engage in corrupt practices. Under Republic Act No. 6713, also known as the Code of Conduct and Ethical Standards for Public Officials and Employees, public officials are mandated to declare their assets, liabilities, net worth, and financial and business interests.

Grave Misconduct is defined as a serious transgression of some established and definite rule of action, particularly unlawful behavior or gross negligence by a public officer. It implies a wrongful intention, not merely an error in judgment. Dishonesty, on the other hand, involves the intentional making of false statements or the practice of deception to secure an advantage. Both require evidence of intent to violate the law or to deceive.

Section 8 of R.A. No. 6713 specifically addresses the obligation to submit accurate SALNs. It states that public officials have a duty to declare their assets, liabilities, net worth, and financial and business interests, including those of their spouses and unmarried children under 18 living in their households.

Consider a scenario where a local government official fails to declare a newly purchased property in their SALN. If this omission is due to an honest mistake and corrected upon notification, it might not lead to charges of misconduct. However, if the official intentionally hides the property to conceal unexplained wealth, it could lead to serious legal repercussions.

Case Breakdown: The Journey of Hurley D. Salig

Hurley D. Salig’s ordeal began with an anonymous letter-complaint received by the Office of the President in 2005, alleging that Salig had acquired significant assets, including properties and vehicles, beyond his means as a public servant. The complaint was forwarded to the Presidential Anti-Graft Commission (PAGC), which then referred it to the Office of the Ombudsman (OMB).

The OMB, through its Public Assistance and Corruption Prevention Office (PACPO), conducted a thorough investigation, including a lifestyle check on Salig. They gathered documents from various agencies to verify Salig’s assets and income. The investigation revealed that Salig and his wife owned several properties and businesses, which were not fully disclosed in his SALNs from 2002 to 2005.

In 2012, the Office of the Deputy Ombudsman for Luzon (ODOL) found Salig guilty of Grave Misconduct, Serious Dishonesty, and violation of Section 8 of R.A. No. 6713, imposing the penalty of dismissal from service. Salig appealed to the Court of Appeals (CA), which in 2014 partially granted his petition. The CA found him guilty of Simple Negligence instead, reducing the penalty to a six-month suspension without pay.

Salig’s defense was that his assets were acquired through legitimate means, including loans and inheritance. He argued that he did not willfully conceal any information in his SALNs. The Supreme Court reviewed the case and noted the following key points:

• The Court emphasized that failing to include properties in the SALN does not automatically amount to grave misconduct unless it is linked to the performance of official duties.
• Salig’s failure to declare certain assets was not found to be malicious or intended to defraud the government.
• The Court highlighted the importance of the review and compliance procedure under R.A. No. 6713, which allows public officials to correct their SALNs before facing sanctions.

The Supreme Court ultimately ruled in favor of Salig, dismissing all administrative charges against him. The Court stated, “After a careful evaluation of Salig’s income, properties and SALNs, we agree with the CA that (1) failing to include properties in the SALN does not amount to grave misconduct, and (2) mere misdeclaration in the SALN does not amount to dishonesty.” The decision underscored the need for a chance to correct SALN discrepancies before imposing penalties.

Practical Implications: Ensuring Compliance and Avoiding Liability

This ruling sets a precedent for how SALN discrepancies should be handled. Public officials must be diligent in their SALN submissions, but they should also be given the opportunity to correct any errors before facing severe penalties. This decision may encourage government agencies to implement more robust review and compliance procedures to ensure that SALNs are accurately completed.

For businesses and property owners, this case highlights the importance of maintaining clear records of asset acquisition and funding sources. In case of any scrutiny, having documentation ready can help prove the legitimacy of one’s wealth.

Key Lessons:

• Public officials should meticulously complete their SALNs to avoid allegations of misconduct.
• Agencies should establish effective review and compliance procedures to allow for corrections before imposing sanctions.
• Individuals and businesses should keep detailed records of their financial transactions to prove the legitimacy of their assets.

Frequently Asked Questions

What is a SALN?

A Statement of Assets, Liabilities, and Net Worth (SALN) is a document required of public officials and employees in the Philippines to declare their financial status, ensuring transparency and accountability.

Can failing to declare assets in a SALN lead to dismissal?

Yes, but only if the failure is proven to be intentional and linked to misconduct or dishonesty. The Supreme Court’s ruling in Salig’s case indicates that public officials should be given a chance to correct their SALNs before facing severe penalties.

What should I do if I find errors in my SALN after submission?

Contact your agency’s designated review committee or head of office immediately to correct any errors or omissions. The law allows for such corrections before sanctions are imposed.

How can businesses protect themselves from similar allegations?

Businesses should maintain clear and detailed records of all financial transactions, including loans and asset acquisitions, to prove the legitimacy of their wealth if questioned.

What are the key elements of grave misconduct and dishonesty?

Grave misconduct requires evidence of corruption, clear intent to violate the law, and flagrant disregard of established rules. Dishonesty involves the intentional making of false statements or practicing deception.

ASG Law specializes in administrative and public law matters. Contact us or email hello@asglawpartners.com to schedule a consultation and ensure your SALN compliance is handled with the utmost care and diligence.