The Supreme Court of the Philippines affirmed the dismissal of a Clerk of Court for misappropriating public funds. Arlene B. Asetre, a Clerk of Court at the Municipal Trial Court in Ocampo, Camarines Sur, was found guilty of dishonesty after a financial audit revealed significant shortages in court funds under her management. This ruling underscores the high standard of integrity required of court officials and the severe consequences for breaches of public trust, ensuring accountability in the management of judiciary funds.

Custodians of Justice or Defrauders of Funds? Examining a Clerk’s Betrayal

This case revolves around Arlene B. Asetre, a Clerk of Court in Ocampo, Camarines Sur, who faced administrative complaints for malversation of public funds and violations of court circulars. An audit revealed she had incurred a cash shortage of P150,004.00. The shortage came from unremitted cash collections dating from December 8, 2003, to November 13, 2009. The Commission on Audit (COA) report indicated that Asetre failed to deposit collections promptly. She also admitted to using the funds for personal expenses.

The charges against Asetre stemmed from findings that she did not remit or deposit her collections on time to the authorized depository bank. This resulted in the accumulation of cash under her custody. The delays ranged from one day to over two years, a clear breach of established financial procedures. In her defense, Asetre admitted to misappropriating the money due to financial problems. She requested the court’s indulgence to allow her to restitute the shortages and pleaded for compassion. The Office of the Court Administrator (OCA) initially recommended holding the case in abeyance pending a financial audit by the Court Management Office of the OCA (CMO-OCA).

Prompted by COA’s findings, the CMO-OCA conducted a financial audit covering March 1, 2004, to July 16, 2009. The results echoed the COA’s initial findings, confirming the shortages in Asetre’s accountabilities. The audit revealed significant under-remittances in several funds, including the Judiciary Development Fund (JDF), Special Allowance for the Judiciary Fund (SAJF), Mediation Fund (MF), and Victim’s Compensation Fund (VCF). For instance, the audit of the Judiciary Development Fund (JDF) showed under-remittances totaling P60,725.30. The audit of the Special Allowance for the Judiciary Fund (SAJF) uncovered deficiencies amounting to P91,598.50.

The Fiduciary Fund (FF) also reflected a shortage of P53,961.43. These findings painted a clear picture of systematic mismanagement and misappropriation. The audit team also discovered that Asetre had not been regularly submitting monthly reports of collections and deposits to the Accounting Division of the OCA. The failure to deposit fiduciary fund collections led to the closure of the Land Bank of the Philippines savings account due to insufficient balance. Furthermore, Asetre failed to collect the Sheriff’s Trust Fund, violating Revised Rule 141, Rules of Court in Supreme Court Administrative Matter No. 04-2-04-SC.

In response to these findings, the Court directed Asetre to restitute the shortages and explain her failures. Asetre admitted to the allegations, except for the failure to submit monthly reports. She absolved Judge Contreras of any knowledge of her actions. As for her failure to collect P1,000.00 from plaintiffs for sheriff expenses, she claimed she was following the practice of the former clerk of court. She also said that the sheriff’s services were often unnecessary due to alternative notification methods.

The OCA recommended Asetre’s dismissal for Dishonesty and Conduct Prejudicial to the Best Interest of the Service. The OCA also recommended a fine for Judge Manuel E. Contreras for simple negligence. The Supreme Court emphasized that clerks of court are custodians of the court’s funds. Therefore, their conduct must reflect the highest standards of integrity. The court referenced Re: Misappropriation of the Judiciary Fund Collections by Juliet C. Banag, Clerk of Court, MTC, Plaridel, Bulacan, 465 Phil. 24, 34 (2004). It also referenced Office of the Court Administrator v. Fortaleza, A.M. No. P-01-1524, July 29, 2002, 385 SCRA 293, 303. Both cases highlight the serious responsibilities of clerks of court.

The court found Asetre’s failure to remit court collections a violation of Administrative Circular No. 3-2000. This circular mandates the immediate deposit of fiduciary collections with an authorized government depository bank. The Circular states, “The daily collections for the Fund in these courts shall be deposited everyday with the nearest LBP branch for the account of the Judiciary Development Fund, Supreme Court, Manila – SAVINGS ACCOUNT NO. 0591-0116-34 or if depositing daily is not possible, deposits for the Fund shall be at the end of every month, provided, however, that whenever collections for the Fund reach P500.00, the same shall be deposited immediately even before the period above-indicated.”

The court emphasized that clerks of court must deposit collections immediately with authorized government depositories. They are not authorized to keep funds in their custody. Failure to fulfill these responsibilities warrants administrative sanctions. The Court cited Report on the Financial Audit Conducted on the Books of Accounts of Mr. Agerico P. Balles, MTCC-OCC. Tacloban City, A.M. No. P-05-2065, April 2, 2009, 583 SCRA 50, 61. This case illustrates that even full payment of shortages does not exempt an officer from liability.

By failing to remit public funds, Asetre violated the trust reposed in her as a disbursement officer. Her failure to deposit the funds was prejudicial to the court. Under Section 22 (a), (b) and (c) of Rule XIV of the Omnibus Rules Implementing Book V of Executive Order No. 292, Dishonesty is a grave offense, punishable by dismissal even for the first offense. Regarding Judge Contreras, the Court acknowledged his failure to monitor the court’s financial transactions effectively. Considering the COA’s prior notification of irregularities, Judge Contreras should have taken immediate action.

The Supreme Court underscored that all those involved in the dispensation of justice must be beyond suspicion. The Court referenced In Re: Report of COA on the Shortage of the Accountabilities of Clerk of Court Lilia S. Buena, MTCC, Naga City, 348 Phil. 1, 9 (1998). Also referenced was In Re: Delayed Remittance of Collections of Odtuha, 445 Phil. 220, 224 (2003). All employees should exemplify integrity and honesty. The Court did not hesitate to impose the ultimate penalty on those who fall short of their accountabilities.

FAQs

What was the main issue in this case?	The central issue was whether Arlene B. Asetre, a Clerk of Court, should be held administratively liable for failing to remit court collections, resulting in significant shortages.
What funds were affected by the shortages?	The shortages affected multiple funds, including the Judiciary Development Fund (JDF), Special Allowance for the Judiciary Fund (SAJF), Mediation Fund (MF), Victim’s Compensation Fund (VCF), and Fiduciary Fund (FF).
What was the Supreme Court’s ruling?	The Supreme Court found Arlene B. Asetre guilty of dishonesty and ordered her dismissal from service, along with the forfeiture of retirement benefits and a mandate to restitute the missing funds.
What administrative circular did Asetre violate?	Asetre violated Administrative Circular No. 3-2000, which requires the immediate deposit of fiduciary collections with an authorized government depository bank.
What was Judge Contreras’ involvement in the case?	Judge Manuel E. Contreras was admonished for failing to adequately monitor the financial transactions of the court and for not acting on prior COA notifications regarding Asetre’s irregularities.
What specific offense was Asetre found guilty of?	Arlene B. Asetre was found guilty of dishonesty, which is classified as a grave offense under civil service rules, warranting dismissal even for the first offense.
What action did the Court take regarding Asetre’s benefits?	The Court ordered the forfeiture of all of Asetre’s retirement benefits, except accrued leave credits, and directed that these be applied towards the restitution of the shortages.
What was the total amount of the shortages Asetre was ordered to restitute?	Asetre was ordered to restitute a total of Two Hundred Twenty-One Thousand Two Hundred Thirty-One Pesos and Ninety-Eight Centavos (P221,231.98), representing the total shortages she incurred.

This case serves as a stern reminder to all court employees about the importance of upholding the highest standards of integrity and accountability. The Supreme Court’s decision emphasizes that any breach of public trust will be met with severe consequences. It is crucial for all those entrusted with public funds to adhere strictly to established financial procedures and regulations.

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: COMMISSION ON AUDIT v. ASETRE, A.M. No. P-11-2965, July 31, 2012