MENESES v. SANDIGANBAYAN Funds.
She was held to have willfully and unlawfully misappropriated,
May 20, 1994 | Quiason, J.
PETITIONER: Emilia M. Meneses
RESPONDENTS: Sandiganbayan and People of the Philippines
SUMMARY: An audit team was directed to conduct the audit examination of
cash and accounts of Meneses wherein it was revealed that the latter had a
shortage and that no cash and valid cash items were produced to effect the
shortage found in her accountabilities. Meneses defense was that she did not
benefit from the missing funds and that they were merely disbursed as cash
advances to her co-employees in good faith and in continuance of a practice
tolerated in her office. The Court held that such act was actually in the form of
extending loans which is prohibited by the Government Auditing Code of the
Philippines, Memorandum No. 570 of the General Auditing Office, and Art. 217
of the RPC.
DOCTRINE: The grant of loans through the "vale" system is a clear case of an
accountable officer consenting to the improper or unauthorized use of public
funds by other persons, which is punishable by the law. To tolerate a such
practice is to give a license to every disbursing officer to conduct a lending
operation with the use of public funds.
FACTS:
1. Under orders issued by the Provincial Auditor, an audit team was directed to
conduct the audit examination of cash and accounts of Meneses. The Audit
examination revealed that Meneses had a shortage of remittances and that
no cash and valid cash items were produced to effect the shortage found in
her accountabilities.
2. The Auditor sent a demand letter to Meneses to which the latter replied that
she had not benefited from the missing funds and that said funds were
merely disbursed as cash advances to her co-employees in good faith and in
continuance of a practice tolerated in her office.
3. The Provincial Auditor, upon recommendation, filed a complaint for
Malversation of Public Funds supported by the affidavits of the audit team.
Consequently, the Sandiganbayan found her guilty.
4. Petitioner Meneses, Cashier of the Treasurers Office of Albay, assails the
decision of the Sandiganbayan finding her guilty of Malversation of Public
embezzled and taken away from said public funds the total amount of
P2,502,001.33.
ISSUES:
1. WoN Petitioner Meneses is guily of Malversation of Public Funds YES
RULING: Wherefore premises considered, the petition is hereby DISMISSED.
RATIO:
1. The Court ruled that petitioners defense that they were merely disbursed as
cash advances cannot be sustained. The practice of disbursing public funds,
under the vale system as a defense in malversation cases, was advancd,
briefed and argued in Cabello and found not meritorious. In Cabello, the
Court held that the giving of "vales" by public officers out of their
accountable funds is prohibited by P.D. No. 1145, otherwise known as the
Government Auditing Code of the Philippines and Memorandum Circular
No. 570, dated June 24, 1968 of the General Auditing Office.
2. Article 217 of the Revised Penal Code provides that any public officer who,
by reason of the duties of his office, is accountable for public funds or
property, shall appropriate the same, or shall take or misappropriate or shall
consent, or through abandonment or negligence, shall permit any other
person to take such public funds or property, wholly or partially, shall be
guilty of the misappropriation or malversation of such funds or property.
3. The grant of loans through the "vale" system is a clear case of an
accountable officer consenting to the improper or unauthorized use of
public funds by other persons, which is punishable by the law. To tolerate a
such practice is to give a license to every disbursing officer to conduct a
lending operation with the use of public funds.
4. There is no law or regulation allowing accountable officers to extend loans
to anyone against "vales" or chits given in exchange by the borrowers. On
the other hand, the General Auditing Office (now the Commission on Audit)
time and again, through repeated office memoranda and rulings had warned
against the acceptance of "vales" or chits by any disbursing officer because
such transactions are really forms of loans (Memorandum Circular No. 570,
June 24, 1968, General Auditing Office). Under Memo No. 570, cash
advance asked by any auditing personnel requires the prior approval of the
Auditor General, Deputy Auditor General, or the proper department
manager.