In Hermoso Arriola and Melchor Radan v. Sandiganbayan, the Supreme Court addressed the accountability of public officers for confiscated property entrusted to their custody. The Court ruled that a barangay captain who willingly takes custody of confiscated lumber becomes an accountable officer, responsible for its safekeeping. This decision clarifies that even if the usual duties of an office do not include custody of confiscated items, assuming responsibility through a signed receipt creates accountability under Article 217 of the Revised Penal Code, particularly concerning malversation through negligence or abandonment.

Custody and Consequences: When a Barangay Official Becomes Accountable for Lost Lumber

The case stemmed from the alleged loss of confiscated lumber that was placed under the custody of Hermoso Arriola, a barangay captain, and Melchor Radan, a barangay chief tanod. These officials were tasked with safeguarding approximately forty-four pieces of illegally sawn lumber, which had been confiscated by the Philippine National Police and DENR personnel. The lumber was then stored at Radan’s residence. When the lumber went missing, both Arriola and Radan were charged with malversation of public property through negligence or abandonment, as defined and penalized under Article 217 of the Revised Penal Code. The Regional Trial Court initially found Arriola guilty as the principal and Radan as an accessory. However, the Court of Appeals referred the case to the Sandiganbayan, which ultimately dismissed the appeal due to procedural errors. The Supreme Court then took up the case to address the merits and procedural issues involved.

The central question before the Supreme Court was whether Arriola and Radan were indeed accountable officers within the meaning of Article 217 of the Revised Penal Code, given their roles and the circumstances of the confiscated lumber. To convict someone of malversation, the prosecution must establish several key elements. First, the accused must be a public officer. Second, they must have custody or control of funds or property by reason of their office. Third, the funds or property must be public, and the officer accountable for them. Finally, the officer must have misappropriated the funds or property, or consented to, or through negligence, permitted their taking by another person. An accountable officer is defined as someone who, due to their office, is responsible for public funds or property.

The Court referenced Sec. 101 (1) of the Government Auditing Code of the Philippines (PD No. 1455), which specifies that an accountable officer is any government agency officer whose duties permit or require the possession or custody of government funds or property, and who is therefore responsible for their safekeeping. The determination of who qualifies as an accountable officer hinges on the nature of the duties performed, not just the title or importance of the position held. In this context, the fact that Arriola signed the seizure receipt for the confiscated lumber was significant. Chapter IV, I-E, (4) of the DENR Primer on Illegal Logging outlines procedures for handling confiscated forest products, stating that they should be deposited at the nearest CENRO/PENRO/RED office for safekeeping. If immediate transfer is not feasible, the products may be placed under the custody of a licensed sawmill operator or a local public official, such as a Barangay Captain.

The ruling in United States v. Lafuente provides further context. In that case, a Municipal Secretary who embezzled public funds deposited with him under authority of law was found guilty of misappropriation, even though receiving public funds was not part of his normal duties. The secretary was obligated to safeguard the money for the government. Similarly, in Arriola’s case, by signing the seizure receipt, he willingly committed to safeguarding the lumber on behalf of the Government. The receipt explicitly stated that, as custodian, Arriola was obliged to protect the seized articles from defacement, destruction, or loss, and that he would not alter or remove them without authorization from the DENR or a court of law. Thus, although a Barangay Captain does not typically handle confiscated items, the DENR Primer on Illegal Logging empowers them to take custody when necessary, pursuant to Section 68 of Presidential Decree No. 705.

Furthermore, even before signing the seizure receipt, Arriola had initially apprehended the lumber. This prior possession made him accountable from the outset. His defense that he was not liable for malversation through negligence was weakened by the fact that the lumber turned up at the Magdiwang cockpit where he was a stockholder. Arriola admitted knowing about the missing lumber before the DENR officers returned, but failed to report it, fearing the thieves might panic and abscond with the lumber entirely. His attempt to replace the missing lumber with a cheaper, unmarked substitute further undermined his credibility. The Court found that the testimonies of government witnesses were credible and corroborated each other, effectively disproving Arriola’s alibis and denials.

On the other hand, the Court found that the evidence against Radan was insufficient to prove his liability as an accessory. According to Article 19, par. 2 of the Revised Penal Code, an accessory is someone who, knowing about the commission of a crime but without participating as a principal or accomplice, takes part after its commission by concealing or destroying the body of the crime to prevent its discovery. The prosecution’s evidence—Radan’s presence during the turnover of the seized items and the lumber’s storage behind his father’s house—did not sufficiently prove his complicity. The assertion that Radan transported the lumber to the cockpit was deemed speculative. Since guilt was not proven with moral certainty, the presumption of innocence favored Radan, leading to his exoneration.

Regarding the penalty for Arriola, Article 217, paragraph 4 of the Revised Penal Code prescribes reclusion temporal in its medium to maximum periods for malversation involving amounts over P12,000 but less than P22,000. Applying the Indeterminate Sentence Law, the Court determined that the appropriate penalty ranged from 14 years and 8 months to 18 years, 2 months, and 20 days, which aligned with the trial court’s decision. Additionally, Arriola was subject to perpetual special disqualification and a fine equal to the amount malversed (P17,611.20), without subsidiary imprisonment because the principal penalty exceeded prision correccional.

FAQs

What was the key issue in this case?	The key issue was whether a barangay captain could be held accountable for the loss of confiscated lumber placed under his custody. The Supreme Court determined that by accepting custody and signing a receipt, the barangay captain became an accountable officer responsible for the lumber’s safekeeping.
What is malversation of public property?	Malversation of public property occurs when a public officer, entrusted with public funds or property, misappropriates it, or through negligence, allows another person to take it. This crime is defined and penalized under Article 217 of the Revised Penal Code.
Who is considered an accountable officer?	An accountable officer is a public officer who, by reason of their office, is accountable for public funds or property. This includes those whose duties permit or require the possession or custody of government funds or property, as defined under Sec. 101 (1) of the Government Auditing Code of the Philippines (PD No. 1455).
What duties does a Barangay Captain have regarding confiscated items?	While a Barangay Captain’s usual duties may not include the custody of confiscated items, they can be called upon to take custody of such items, especially in cases involving illegally logged lumber. This is in line with the DENR Primer on Illegal Logging and Section 68 of Presidential Decree No. 705.
What was the role of Melchor Radan in this case?	Melchor Radan was the barangay chief tanod. He was initially found guilty as an accessory to the crime, but the Supreme Court acquitted him due to insufficient evidence to prove his complicity.
What happens if an appeal is filed in the wrong court?	If an appeal is erroneously filed in the Court of Appeals, it will not be transferred to the appropriate court. Instead, it will be dismissed outright, according to Section 2, Rule 50 of the Rules of Court, unless the proper court is designated within the 15-day appeal period.
What is the penalty for malversation of public property?	According to Article 217 of the Revised Penal Code, the penalty for malversation depends on the amount involved. For amounts between P12,000 and P22,000, the penalty is reclusion temporal in its medium to maximum periods, along with perpetual special disqualification and a fine equal to the amount malversed.
What is the significance of signing a seizure receipt?	Signing a seizure receipt indicates that the person signing is taking responsibility for the safekeeping and protection of the seized items. It legally binds the signatory to ensure that the items are not defaced, destroyed, or lost until ordered by the DENR or a court of law.

The Supreme Court’s decision underscores the responsibilities that come with holding public office and accepting custody of government property. Public officials must exercise diligence in safeguarding property entrusted to them, or they risk facing charges of malversation. The ruling also clarifies that accountability can arise from specific actions, like signing a receipt, even if the duty is not explicitly part of the official’s regular job description.

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: HERMOSO ARRIOLA AND MELCHOR RADAN, VS. SANDIGANBAYAN, G.R. NO. 165711, June 30, 2006