am_96_10_38_1997

OF RIZAL PROVINCE PUNO, J.:

This treats of the Report of Deputy Court Administrator Zenaida N. Elepano dated September 26, 1997 pursuant to the Resolution of the Court en banc dated January 21, 1997. The Resolution was issued as a result of the Report dated August 9, 1996 and August 14, 1996 of retired Justice Felipe B. Kalalo, Regional Coordinator, Judicial Planning Development and Implementation Office (JPDIO) of this Court on the audit conducted in all courts of Rizal province 1 from August 1 to 6, 1996. Justice Kalalo found several irregularities particularly with regard to the entry and remittance of Judiciary Development Fund (JDF) and Fiduciary Fund collections.

This Court's Resolution of January 21, 1997 disposed as follows: IN VIEW WHEREOF, we hereby order that: 1. An immediate audit, examination and reconciliation of the JDF collections, deposits and remittances be conducted by the Fiscal Audit Division, Office of the Court Administrator in the following courts: a. Regional Trial Court, Binangonan, Rizal; b.

Municipal Trial Court, Cardona, Rizal; c. Municipal Trial Court of Pililla-Jala-Jala. and for said office to submit its report, findings and recommendations within fifteen (15) days.

2. Mrs. Ermelina C. Bernardino, Clerk of Court of the Municipal Trial Court of Cardona, Mrs. Libertad San Juan, Clerk of Court of the Municipal Circuit Trial Court of Pililla-Jala-Jala, Atty. Manuel I. Banting, Clerk of Court of the Regional Trial Court of Binangonan, and Ma. Luisa Tuazon, cash clerk at the Regional Trial Court of Binangonan are immediately relieved from their respective duties and temporarily replaced by other competent court personnel to be recommended by the Court Administrator pending the results of the audit to be conducted by the FMBO; 3.

Atty. Myrna Directo, Clerk of Court of the Regional Trial Court of Morong and Deputy Sheriff Restituto Soriano, officer-in-charge of said court, are required to explain why they have been depositing the JDF collection in a private band and to account for the interest earned by such deposit within ten (10) days from receipt of this resolution; 4. Cesar Clamar, officer-in-charge of the Office of the Clerk of Court of the Municipal Trial Court of Taytay is advised to use the prescribed JDF cash book and to update the entries therein within ten (10) days from receipt of this resolution. 5.

Administrative charges be immediately filed by the Office of the Court Administrator against Mrs. Ermelina C. Bernardino, Mrs. Libertad San Juan, Atty. Manuel I. Banting, Ma. Luisa Tuazon, Atty. Myrna Directo, Deputy Sheriff Restituto Soriano, and all other court personnel involved in the irregularities concerning the collection and remittance of JDF in their respective courts. They are hereby placed under preventive suspension without pay pending the result of the respective administrative complaints.

6. Presiding Judge Ricardo P. Angeles of the Municipal Circuit Trial Court of Teresa-Baras is required to explain within ten (10) days from receipt of this resolution his failure to decide within the reglementary period of ninety (90) days the cases long submitted for decision.2 In compliance with this Resolution, the following were filed with this Court: (1) the Audit Report dated February 20, 1997 of the Fiscal Audit Division, 3 Office of the Court Administrator with respect to the MTC, Cardona, Rizal and MCTC, Pililia-Jala-Jala, Rizal; (2) Compliance and Explanation dated February 12, 1997 filed by Atty. Myrna C. Directo, Clerk of Court, RTC, Morong, Rizal and Deputy Sheriff Restituto B. Soriano of said court; 4 (3) Request/Motion to Lift Preventive Suspension of Atty. Myrna C. Directo; 5 (4) Explanation dated February 14, 1997 of Judge Ricardo P.

Angeles, MCTC, Teresa-Baras and Acting Presiding Judge of MCTC, Pililia-Jala-Jala, Rizal; 6 (5) Audit Report dated April 8, 1997 of the Fiscal Audit Division, Office of the Court Administrator relative to the JDF collections, deposits and remittances in the RTC, Binangonan, Rizal; 7 and (6) Request/Motion to Lift Preventive Suspension filed by Mrs. Libertad San Juan, MCTC, Pililia-Jala-Jala, Rizal.8 I THE AUDIT REPORT IN THE MTC, CARDONA, RIZAL. The audit conducted in the MTC, Cardona, Rizal by the Fiscal Audit Division, Office of the Court Administrator was for the period ending October 31, 1995. Mrs. Ermelita C. Bernardino was appointed Clerk of Court II of said court on March 1, 1995.

The audit team found that the last JDF collection remitted on January 15, 1995 in the amount of P800.00 and reported by Justice Kalalo as collection for December 1994 represents the collection for November 1994 in the sum of P237.50 and December 1994 in the sum of P652.50. These amounts were deposited with the Land Bank of the Philippines (LBP) under the name of the court. JDF collections amounting to P36,441.50 from January 1995 to July 1996, for a period of nineteen (19) months were remitted to the Supreme Court Cashier's Division 9 on September 30, 1996.

JDF collections for September and October 1996 in the amounts of P40.00 and P600.00 were deposited with the LBP on October 10, 1996 and November 6, 1996, respectively. Prior to January 1996, collections for the General Fund were made by the municipal government pursuant to Section 93 of the Judiciary Act of 1948. From January 1996 to December 1996, General Fund collections were remitted to the Supreme Court Cashier's Division on September 30, 1996, 10 on October 9, 1996, 11 and on November 7, 1996.

12 Collections for the Fiduciary Fund started in July 1994. The collections were deposited with the LBP, Binangonan, Rizal Branch. As of October 1996, a balance of P79,700.00 was verified to be deposited with said bank in the name of the MTC, Cardona, Rizal.

II THE AUDIT REPORT IN THE MCTC, PILILIA-JALA-JALA, RIZAL. The audit conducted in the MCTC, Pililia-Jala-Jala, Rizal covered the period from September 1993 to October 1996. Mrs. Erna Casas was the Officer-in-Charge of cash accountabilities of said court from September 1, 1993 to February 1995.

Clerk of Court Libertad San Juan, who was appointed Clerk of Court II, took over on March 1, 1995. The last JDF remittance of P4,937.00 made in March 1995 as stated in Justice Kalalo's Report represents collections for February 1995. For a period of eighteen (18) month, from March 1995 to August 1996, the total JDF collection deposited with the LBP was P39,519.50.

JDF collections for September 1996 and October 1996 were likewise deposited with the LBP on October 2, 1996 and November 15, 1996, respectively. The collections were deposited under the JDF Savings Account. Collections for the General Fund from September 1993 to September 1996 were erroneously incorporated with the collections for the JDF.

This explains the large collection reflected in the JDF which is unusual for an MCTC. This error was, however, corrected in September 1996. General Fund collections P23,965.00 for the month of October 1996 representing interest on Fiduciary Fund Collections were deposited with the LBP on October 16, 1996.

The balance of the Fiduciary Fund collection covering the period of October 1993 to October 1996 in the total amount of P280,645.00 was found deposited with the LBP, Tanay Branch in the name of the MCTC, Pililia-Jala-Jala. Despite the subsequent compliance with the Circulars, Mrs. Bernardino, Clerk of Court II, Cardona, Rizal and Mrs. San Juan, Clerk of Court II, MCTC, Pililia-Jala-Jala, Rizal were found by the audit team to have essentially failed to observe the circulars issued by this Court and the Court Administrator in connection with their duties and responsibilities as accountable officers.

III PARTIAL AUDIT REPORT IN THE RTC, BINANGONAN, RIZAL. The incumbent Clerk of Court of the RTC, Binangonan, Rizal is Atty. Manuel I. Banting. The actual collection of fees and the recording of transactions are performed by Mrs. Ma.

Luisa Tuazon, Clerk III in the Office of the Clerk of Court, same court. The team audited the JDF collections over a period of eleven (11) years and ten (10) months, i.e. , from February 1988 to December 1996.

The JDF collections from February 1985 to December 1994, a period of 9 years and 9 months, were remitted and accounted for. The depository bank for the amounts collected until March 1994 was the PNB Ortigas branch and for the amounts collected from April 1994 to October 1994 was the PNB Cainta branch. The LBP became the depository bank in January 1996.

An examination of the cash books of the court showed that there were no JDF collections or remittances for the months of November and December 1994. Remittances were made from January 1995 to December 1996 but these were irregular resulting in an under remittance of P106,311.68. The audit of the Fiduciary Fund was made from February 1984 to December 1995 only since no records for collections, deposits and withdrawals were presented for the whole year of 1996.

The audit was made on file copies of monthly reports because no cash books were maintained. Monthly reports submitted to the Accounting Division of the Supreme Court were based on duplicates of official receipts instead of entries from the cash books. As gleaned from available documents, the balance of the Fiduciary Fund as of December 1995 should have been P990,452.80.

Considering that no cash books were used where the running balance of the Fiduciary Fund may be determined at the beginning and ending of each monthly transactions, the said balance of P990,452.80 cannot be verified. Moreover, no passbook indicating all the deposits and withdrawals of the court was presented to the audit team. The Clerk of Court's General Fund and the Sheriff's General Fund were audited for a period of twelve (12) years, from January 1984 up to December 1996.

Remittances of the collection were irregular in the years 1994, 1995 and 1996. The audit team tentatively estimated unremitted collections for the Clerk of Court's General Fund at P99,314.93 while that of the Sheriff's General Fund at P46,038.97. These amounts may, however, be adjusted upon presentation of receipts and other proofs of remittances and payment.

The audit team recommended that Atty. Banting be made to explain and account for the following shortages: 1. Judiciary Development Fund P106,311.68 2. Fiduciary Fund 990,451.80 3.

Clerk of Court General Fund 99,314.83 4. Sheriff's General Fund 46,038.97