Clerks of court are entrusted with the critical responsibility of managing court funds and ensuring their proper use. When a clerk of court fails to uphold this duty by misappropriating funds, the Supreme Court has affirmed that dismissal from service is a just consequence. This ruling underscores the high ethical standards expected of court employees and reinforces the judiciary’s commitment to accountability and transparency. This serves as a warning against mishandling of public funds entrusted to court personnel.

Dahlia Borromeo’s Defiance: Can a Clerk of Court Mismanage Public Funds with Impunity?

This case revolves around the actions of Dahlia E. Borromeo, a Clerk of Court II at the Municipal Trial Court in Cities (MTCC) of Biñan, Laguna. An audit revealed significant shortages and missing funds under her watch, prompting an administrative investigation. The Court Administrator initiated the inquiry after Borromeo repeatedly failed to submit necessary financial records, raising serious concerns about her handling of court finances. This eventually led to the present administrative case against her.

The audit uncovered substantial discrepancies in the Judiciary Development Fund, Clerk of Court General Fund, and Fiduciary Fund. For instance, the audit found that the total collections for the Judiciary Development Fund from April 1, 1995, to August 31, 2001, amounted to P719,450.20, but the total deposits/remittances were only P381,935.90, leaving a shortage of P337,514.30. Likewise, for the Clerk of Court General Fund, the total collections from August 1, 1994, to August 31, 2001, were P625,776.65, while the total deposits/remittances were P360,258.15, resulting in a shortage of P265,518.50. Further, collections on the Fiduciary Fund were not deposited for safekeeping in the Land Bank of the Philippines (LBP) as required.

Beyond the monetary shortages, the audit team noted a general disarray in the court’s records and accounting controls. Borromeo lacked a systematic filing or accounting procedure. Moreover, she had not submitted monthly reports of collections and deposits/withdrawals to the Office of the Court Administrator (OCA) for extended periods. It was also observed that Borromeo allowed a non-employee to perform the duties and responsibilities of a regular court employee, raising further concerns about her management practices.

In response to these findings, the Supreme Court directed Borromeo to explain the discrepancies, restitute the missing funds, and produce all relevant records. She was also preventively suspended from her position. Despite these directives, Borromeo’s compliance was incomplete and delayed, prompting further investigation and ultimately leading to the formal administrative complaint.

Borromeo attempted to justify her actions by citing various challenges, including the absence of a permanent judge, frequent office transfers, and personal financial difficulties. However, the Court found these explanations insufficient to excuse her failure to properly manage and account for court funds. The Court emphasized the crucial role of clerks of court in the administration of justice, stating:

Clerks of Court perform a delicate function as designated custodians of the court’s funds, revenues, records, properties, and premises. As such, they are generally regarded as treasurer, accountant, guard, and physical plant manager thereof. It is the duty of the Clerks of Court to faithfully perform their duties and responsibilities.

The Supreme Court found Borromeo liable for **gross dishonesty**, **grave misconduct**, and **gross neglect of duty**. The Court emphasized that her failure to remit collections and submit financial reports constituted a serious breach of trust. The Court quoted Office of the Court Administrator v. Dequito in defining gross neglect of duty:

Gross neglect of duty refers to negligence characterized by the glaring want of care; by acting or omitting to act in a situation where there is a duty to act, not inadvertently, but willfully and intentionally; or by acting with a conscious indifference to consequences with respect to other persons who may be affected.

Under the Revised Uniform Rules on Administrative Cases in the Civil Service, these offenses are classified as grave, warranting dismissal from service. The Court highlighted the importance of safeguarding funds and collections, noting that timely deposits and accurate reporting are essential to the orderly administration of justice. The Court cited Supreme Court (SC) Circular No. 13-92, which mandates clerks of courts to immediately deposit fiduciary funds with authorized government depository banks and SC Circular No. 32-93, requiring submission of monthly collection reports.

The Supreme Court ultimately ordered Borromeo’s dismissal from service, with forfeiture of all retirement benefits, excluding accrued leave credits, and with prejudice to re-employment in any government office. The Court also directed the application of her accrued leave credits and withheld salaries to the outstanding cash shortage. Additionally, the Office of the Court Administrator was instructed to initiate appropriate criminal charges against Borromeo.

This case serves as a stern reminder of the responsibilities entrusted to clerks of court and the consequences of failing to meet those responsibilities. It reinforces the judiciary’s commitment to maintaining the integrity of court funds and upholding public trust. This also sets precedence on other related cases about misappropriation and gross negligence.

FAQs

What was the key issue in this case?	The key issue was whether Clerk of Court Dahlia E. Borromeo should be held administratively liable for shortages and missing funds discovered during a financial audit of the MTCC in Biñan, Laguna. This involves determining if her actions constituted gross dishonesty, grave misconduct, or gross neglect of duty.
What funds were involved in the shortages?	The shortages involved funds from the Fiduciary Fund, Judiciary Development Fund, and Clerk of Court General Fund. These funds are essential for the operation and administration of the court.
What were the main findings of the financial audit?	The audit revealed significant shortages in multiple funds, a lack of proper record-keeping, failure to submit monthly reports, and non-compliance with circulars regarding the handling of judiciary funds. The audit also showed that a non-employee was performing court functions.
What was Borromeo’s defense?	Borromeo claimed that the absence of a permanent judge, frequent office transfers, and personal financial difficulties hindered her ability to fulfill her duties. However, the Court found these reasons insufficient to excuse her mismanagement.
What administrative circulars did Borromeo violate?	Borromeo violated Administrative Circular No. 32-93, as amended by Administrative Circular No. 3-2000, regarding the collection of legal fees and submission of monthly reports, and Administrative Circular 50-95, concerning the deposit of fiduciary funds. She also violated COA and DOF Joint Circular 1-81.
What was the Supreme Court’s ruling?	The Supreme Court found Borromeo guilty of gross dishonesty, grave misconduct, and gross neglect of duty and ordered her dismissal from service, with forfeiture of retirement benefits and prejudice to re-employment in any government office. This demonstrates zero tolerance for corruption.
What does dismissal with prejudice mean in this context?	Dismissal with prejudice means that Borromeo is barred from being re-employed in any branch or service of the government, including government-owned or controlled corporations. She cannot hold any government position again.
What actions were taken to recover the missing funds?	The Court directed the application of Borromeo’s accrued leave credits and withheld salaries to the cash shortage. It also instructed the Office of the Court Administrator to initiate criminal charges against her to recover the remaining funds.
Why is this case significant?	This case is significant because it underscores the high ethical standards expected of court employees and the judiciary’s commitment to accountability and transparency in handling public funds. It shows that any breach of trust will be met with severe consequences.

This case emphasizes the critical importance of integrity and accountability in public service, particularly within the judiciary. Clerks of court, as custodians of public funds, must adhere to the highest ethical standards and diligently fulfill their responsibilities. Failure to do so will result in severe penalties, including dismissal from service and potential criminal prosecution.

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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: OFFICE OF THE COURT ADMINISTRATOR v. DAHLIA E. BORROMEO, A.M. No. P-18-3841, September 18, 2018