The Supreme Court clarified the standard for dishonesty and grave misconduct charges against public officials who fail to fully disclose assets in their Statements of Assets, Liabilities, and Net Worth (SALNs). In Daplas v. Department of Finance, the Court ruled that a mere failure to declare all assets does not automatically constitute dishonesty or grave misconduct. It emphasized that intent to deceive or conceal is a crucial element. Consequently, the Court reduced Concepcion C. Daplas’s penalty from dismissal to a fine, finding her guilty only of simple negligence because the prosecution failed to prove malicious intent.

When a Simple Oversight Isn’t Grave Misconduct: The Case of Concepcion Daplas

Concepcion C. Daplas, while serving as the City Treasurer of Pasay City and concurrently as the OIC Regional Director of the Bureau of Local Government Finance (BLGF) Region VII, faced administrative complaints for allegedly violating Republic Act No. 6713, otherwise known as the Code of Conduct and Ethical Standards for Public Officials and Employees. These complaints stemmed from her failure to disclose certain assets in her SALNs, including a Mitsubishi Galant sedan registered under her late husband’s name and her stock subscription in KEI Realty and Development Corp (KEI).

The Office of the Ombudsman initially found Daplas guilty of Dishonesty, Grave Misconduct, and violation of Section 8 (A) of RA 6713, imposing the penalty of dismissal. The Court of Appeals (CA) upheld this decision. However, the Supreme Court took a different view, emphasizing the necessity of proving intent to commit a wrong for offenses like Dishonesty and Grave Misconduct.

The requirement to file a SALN is enshrined in Section 17, Article XI of the 1987 Constitution:

Section 17. A public officer or employee shall, upon assumption of office and as often thereafter as may be required by law, submit a declaration under oath of his assets, liabilities, and net worth. In the case of the President, the Vice-President, the Members of the Cabinet, the Congress, the Supreme Court, the Constitutional Commissions and other constitutional offices, and officers of the armed forces with general or flag rank, the declaration shall be disclosed to the public in the manner provided by law.

This constitutional mandate aims to promote transparency and deter government officials from enriching themselves unlawfully. RA 6713 further implements this by requiring public officials to fully disclose their assets, liabilities, and net worth.

The Supreme Court, in its analysis, distinguished between simple negligence and the more severe offenses of Dishonesty and Grave Misconduct. Dishonesty requires intentional falsehood or deception, while Grave Misconduct involves intentional wrongdoing or a deliberate violation of a rule of law with elements of corruption or a clear intent to violate the law.

The court emphasized that:

Dishonesty is committed when an individual intentionally makes a false statement of any material fact, practices or attempts to practice any deception or fraud in order to secure his examination, registration, appointment, or promotion. It is understood to imply the disposition to lie, cheat, deceive, betray or defraud; untrustworthiness; lack of integrity; lack of honesty, probity or integrity in principle; and the lack of fairness and straightforwardness.

And that:

Misconduct is intentional wrongdoing or deliberate violation of a rule of law or standard of behavior. To constitute an administrative offense, misconduct should relate to or be connected with the performance of the official functions and duties of a public officer. In grave misconduct, as distinguished from simple misconduct, the elements of corruption, clear intent to violate the law, or flagrant disregard of an established rule must be manifest.

In Daplas’s case, the Court found no substantial evidence of intent to deceive. Her admission of the business interest in KEI in her counter-affidavit contradicted any malicious intent to conceal. The Ombudsman’s finding that her children had the financial capacity to establish KEI further weakened the claim of unexplained wealth.

The Court referenced previous rulings where the source of undisclosed wealth was properly accounted for, deeming it “explained wealth” not subject to penalty. The Court also considered Daplas’s claim that the Galant sedan was purchased with her husband’s personal funds and registered in his name, although this alone wasn’t conclusive proof, there was no sufficient evidence to prove Daplas was motivated by bad faith in not disclosing.

Ultimately, the Supreme Court concluded that Daplas’s actions constituted Simple Negligence rather than Dishonesty or Grave Misconduct. Simple Negligence, in this context, is akin to Simple Neglect of Duty, a less grave offense. Consequently, the Court reduced the penalty to a fine equivalent to one month and one day of her last salary, considering her resignation and the absence of bad faith.

This case underscores the importance of distinguishing between honest mistakes and intentional wrongdoing in administrative cases involving SALN disclosures. While public officials are expected to be diligent in fulfilling their disclosure obligations, penalties should be proportionate to the nature and severity of the offense, with due consideration given to the official’s intent and the presence of any mitigating circumstances.

FAQs

What was the key issue in this case?	The key issue was whether Concepcion Daplas’s failure to disclose certain assets in her SALNs constituted Dishonesty, Grave Misconduct, or merely Simple Negligence. The Supreme Court focused on whether there was intent to deceive or conceal.
What is a SALN?	A Statement of Assets, Liabilities, and Net Worth (SALN) is a document that government officials and employees are required to file annually, disclosing their assets, liabilities, and net worth, as well as those of their spouses and dependent children. It promotes transparency and helps prevent corruption.
What is the difference between Dishonesty and Simple Negligence in this context?	Dishonesty requires intentional falsehood or deception, implying a disposition to lie or cheat. Simple Negligence, on the other hand, involves a failure to exercise the diligence required by the circumstances, without any malicious intent.
What did the Ombudsman initially rule in this case?	The Ombudsman initially found Concepcion Daplas guilty of Dishonesty, Grave Misconduct, and violation of Section 8 (A) of RA 6713 and imposed the penalty of dismissal from service.
Why did the Supreme Court reduce the penalty?	The Supreme Court reduced the penalty because it found no substantial evidence of intent to deceive or conceal, which is a necessary element for Dishonesty and Grave Misconduct. The court found Daplas guilty only of simple negligence.
What was the final penalty imposed by the Supreme Court?	The Supreme Court imposed a fine equivalent to one month and one day of Concepcion Daplas’s last salary, considering her resignation and the absence of bad faith.
What assets did Daplas fail to declare in her SALNs?	Daplas failed to declare a Mitsubishi Galant sedan registered under her late husband’s name and her stock subscription in KEI Realty and Development Corp.
What is the legal basis for requiring public officials to file SALNs?	The legal basis for requiring public officials to file SALNs is found in Section 17, Article XI of the 1987 Constitution and Republic Act No. 6713, also known as the Code of Conduct and Ethical Standards for Public Officials and Employees.

This case highlights that while SALN compliance is crucial for maintaining public trust, penalties should be proportionate to the gravity of the offense, taking into account the intent and circumstances of the public official. The Supreme Court’s decision reinforces the principle that not all omissions in a SALN constitute dishonesty or grave misconduct, especially when there is no intent to deceive and the source of wealth can be explained.

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: Concepcion C. Daplas v. Department of Finance, G.R. No. 221153, April 17, 2017