CANDAO v.

PEOPLE
G.R. Nos. 186659-710, 19 October 2011
Chairman Pacasio C. Banaria (Banaria) of the Commission on Audit
(COA) constituted a team of auditors to conduct an Expanded Special Audit of
the Office of the Regional Governor, Autonomous Region for Muslim Mindanao
(ORG-ARMM). The audit team formed by Banaria found that illegal withdrawals
were med from the depository accounts of the agency through the issuance of
checks payable to order of Israel B. Haron (Haron), Disbursing Officer II of the
ORG-ARMM, without the required disbursement vouchers. A total of 52 checks
were issued and encashed without proper supporting documents; said checks
all amounted to a total of PhP 21,045,570.64. Banaria thereafter immediately
demanded from Haron to produce and restitute to the ARMM-Regional
Treasurer immediately the full amount of the checks within 72 hours. Haron
submitted copies of disbursement vouchers to the COA receiving clerk,
although this was made beyond the 72 hour deadline given them.
Criminal cases for malversation of public funds under Article 217 of the
Revised Penal Code were filed against the following ORG-ARMM
officials/employees: Zacaria A. Candao (Zacaria), Regional Governor, Haron,
Abas A. Candao (Abas), Executive Secretary and Pandical M. Santiago
(Santiago), Cashier. At their arraignment, all accused pleaded not guilty to the
charge of malversation. In the meantime, Santiago died and consequently the
case against him was dismissed.
The Sandiganbayan found Haron guilty beyond reasonable doubt of
malversation, commited in conspiracy with Zacaria and Abas. The
Sandiganbayan noted that Candao et al. presented no proof that the cash
advances intended for peace and order campaign were spent for public
purposes, as in fact the alleged disbursement vouchers did not indicate any
detail as to the nature of the expense/s such as purchase of equipment,
services, meals, travel, etc. and there were no supporting documents. More
importantly, the vouchers were not accomplished in accordance with existing
COA circulars because they are unnumbered and undated. Hence, the belatedly
submitted vouchers by Haron are of doubtful veracity or origin, nay a
fabricated evidence. For the failure of Haron to account for the funds involved
in the illegal withdrawals when asked to do so, the presumption arose that he
misappropriated the same, which presumption was not overcome by defense
evidence. In a Resolution, the Sandiganbayan denied Candao et al.s motion for
reconsideration.
ISSUE:
Whether or not Candao et al. are guilty of malversation
HELD:
Petition DENIED.

The failure of a public officer to have duly forthcoming any public fund or
property with which he is chargeable, upon demand by any duly authorized
officer, shall be prima facie evidence that he has put such missing funds or
property to personal uses. The following elements are essential for conviction
in malversation cases: (1) that the offender is a public officer; (2) that he had
custody or control of funds or property by reason of the duties of his office; (3)
the those funds or property were public funds or property for which he was
accountable; and (4) that he appropriated, took, misappropriated or consented
or, through abandonment or negligence, permitted another person to take
them.
All the foregoing elements were satisfactorily established by the
prosecution in this case. Petitioners have not rebutted the legal presumption
that with the Disbursing Officers (Haron) failure to account for the illegally
withdrawn amounts covered by the subject checks when demanded by the
COA, they misappropriated and used the said funds for their personal benefit.
In the crime of malversation, all that is necessary for conviction is
sufficient proof that the accountable officer had received public funds, that he
did not have them in his possession when demand therefore was made, and
that he could not satisfactorily explain his failure to do so. Direct evidence of
personal misappropriation by the accused is hardly necessary in malversation.
Petitioners Zacaria A. Candao and his Executive Secretary Abas A.
Candao are both accountable public officers within the meaning of Article 217
of the Revised Penal Code, as amended. No checks can be prepared and no
payment can be effected without their signatures on a disbursement voucher
and the corresponding check. In other words, any disbursement and release of
public funds require their approval, as in fact checks issued and signed by
petitioner Haron had to be countersigned by them. Their indispensable
participation in the issuance of the subject checks to effect illegal withdrawals
of ARMM funds was therefore duly established by the prosecution and the
Sandiganbayan did not err in ruling that they acted in conspiracy with
petitioner Haron in embezzling and misappropriating such funds.