The Supreme Court’s decision in Office of the Court Administrator v. Tomas and Rillorta underscores the high standard of integrity required of public servants, especially those in the judiciary. The Court found Judge Fe Albano Madrid and OIC Angelina C. Rillorta guilty of grave misconduct and serious dishonesty for their involvement in the mismanagement of judiciary funds, including the tampering of official receipts and unauthorized withdrawals. This ruling emphasizes that public office is a public trust, and those who violate this trust will face severe consequences, including forfeiture of retirement benefits and potential disbarment.

Fiduciary Funds Betrayed: Unraveling a Judge’s Misconduct and an OIC’s Complicity

The case began with a financial audit of the Regional Trial Court in Santiago City, Isabela, which revealed significant shortages in judiciary funds. These shortages were linked to Rolando C. Tomas and Angelina C. Rillorta, former Officers-in-Charge (OIC), and involved the tampering of official receipts and over-withdrawal of cash bonds. This led to an administrative complaint filed by Rillorta against Judge Fe Albano Madrid, the former Presiding Judge, alleging dishonesty related to the same audit findings.

The Office of the Court Administrator (OCA) presented evidence showing discrepancies and irregularities in the handling of the Judiciary Development Fund (JDF), General Fund (GF), and Sheriff’s General Fund (SGF). A significant shortage of P6,557,959.70 was discovered in the Fiduciary Fund, representing cash bonds that were withdrawn but lacked complete supporting documents, such as court orders and acknowledgment receipts. This shortage, however, could be reduced to P136,886.16 if the supporting documents were submitted.

Rillorta initially claimed that she had mistakenly deposited collections into the wrong account and that some case records were unavailable. Later, she alleged that Judge Madrid had instructed her to make adjustments to official receipts to balance discrepancies between monthly reports and bank book entries. She further claimed that Judge Madrid instructed her to alter the amounts of cash bonds withdrawn, with the excess amounts allegedly delivered to Judge Madrid.

Judge Madrid denied these allegations, stating that she trusted Rillorta and had little time for financial management due to her caseload. She admitted that the monthly reports did not match the bank book, but argued that this was not alarming because there was more money in the bank, not a shortage. She also denied instructing Rillorta to tamper with official receipts or receiving excess funds.

The Investigating Justice, Elihu Ybañez, found that Judge Madrid had manipulated the Fiduciary Fund. He cited instances where Judge Madrid authorized the withdrawal and release of amounts exceeding the actual cash bail posted, transferred RTC Santiago City Bank Accounts by her as the lone signatory, and had the final say on what should be stated in the Monthly Report of Collections/Deposits/Withdrawals and Disbursements. These actions, the Investigating Justice argued, demonstrated Judge Madrid’s control over the court’s funds and her knowledge of the discrepancies.

Key to the court’s findings was the fact that Judge Madrid admitted to being the sole signatory to the Fiduciary Funds and the General Fund Accounts. She justified this by stating that the decision was made when the Clerk of Court retired and had to transfer the account to her, and because the RTC only had an OIC, not a Clerk of Court, she did not change the signatory. The Supreme Court found this unacceptable, noting that Rillorta, as OIC, had the same duties and responsibilities as a regular clerk of court.

The Court emphasized that public office is a public trust, requiring judges to exhibit the highest degree of honesty and integrity. The acts of tampering with official receipts and over-withdrawal from court funds clearly constitute grave misconduct and serious dishonesty. Misconduct involves a transgression of established rules, while dishonesty involves a disposition to lie, cheat, deceive, or defraud.

The Court rejected Judge Madrid’s argument that Rillorta’s designation as OIC justified her exclusion as a co-signatory. Furthermore, testimony from other court employees supported the fact that Judge Madrid manipulated Fiduciary Fund collections and reports. These testimonies revealed that Judge Madrid ordered the tampering of official receipts and that Rillorta and another clerk kept a list to monitor Judge Madrid’s over-withdrawals and undeposited amounts.

As a result, the Court considered the administrative case against Judge Madrid as a disciplinary proceeding against her as a member of the Bar, in accordance with A.M. No. 02-9-02-SC. Judge Madrid was directed to show cause why she should not be disbarred for violating the Code of Professional Responsibility, particularly Canons 1 and 7 and Rule 1.01 thereof.

The Court found Rillorta liable for grave misconduct for her participation in the tampering of receipts and non-deposit to and over-withdrawals from the Fiduciary Fund. Her claim that she acted upon Judge Madrid’s instructions did not excuse her from liability, as tampering with official documents is unlawful and should never be countenanced. As a public officer, Rillorta had a duty to prevent acts inimical to the judiciary and the public. Her silence and participation in these acts constituted grave misconduct.

Ultimately, the Court held that both Judge Madrid and Rillorta had undermined the people’s faith in the courts and the administration of justice. Since Judge Madrid and Rillorta had already retired from the service, the penalty of dismissal could no longer be imposed. Instead, all of their retirement benefits, except accrued leave benefits, were forfeited, with prejudice to re-employment in any branch of the government, including government-owned or controlled corporations.

The Court directed that Rillorta be given the opportunity to reconcile the records available to her with the records available to the Financial Audit Team and the Accounting Division, Financial Management Office of the OCA to compute the exact amount of the shortages that should be restituted. The Court underscored that it would be unjust to order Rillorta to restitute an incorrect amount as shortages. The Accounting Division, Financial Management Office of the Office of the Court Administrator, was directed to produce the orders and acknowledgment receipts in its custody, if there are any, related to these consolidated cases and forward the same to the Office of the Court Administrator for reconciliation and computation of the exact amount of the shortages.

FAQs

What was the key issue in this case?	The key issue was whether Judge Fe Albano Madrid and OIC Angelina C. Rillorta were guilty of grave misconduct and serious dishonesty for their involvement in the mismanagement of judiciary funds. The court examined their actions concerning the tampering of official receipts and unauthorized withdrawals.
What specific actions were considered grave misconduct?	The specific actions considered grave misconduct included the tampering of official receipts, the over-withdrawal of funds from the Fiduciary Fund, and the failure to prevent these unlawful acts. The failure to adhere to established rules and regulations in financial management also contributed to the finding of grave misconduct.
Why was Judge Madrid found responsible despite claiming she trusted Rillorta?	Judge Madrid’s responsibility stemmed from her position as the Presiding Judge and her failure to properly oversee the handling of court funds. Her claim of trusting Rillorta did not absolve her of the duty to ensure compliance with financial regulations and prevent unlawful acts.
How did the Court determine the penalties for Judge Madrid and Rillorta?	Given that both Judge Madrid and Rillorta had already retired, the penalty of dismissal could not be imposed. Instead, the Court ordered the forfeiture of all their retirement benefits, except accrued leave benefits, with prejudice to re-employment in any branch of the government, including government-owned or controlled corporations.
What is the significance of this case in terms of public trust?	This case underscores the importance of maintaining public trust in the judiciary by requiring the highest standards of integrity and accountability from public servants. It emphasizes that any conduct that undermines the faith of the people in the justice system will not be tolerated.
What does it mean to be a ‘lone signatory’ to court accounts, and why was it an issue?	Being the ‘lone signatory’ means Judge Madrid had sole control over the funds, which violated Supreme Court guidelines requiring co-signatories. This lack of oversight made it easier to manipulate funds without detection, raising concerns about potential abuse of power and financial mismanagement.
What recourse does Rillorta have regarding the restitution amount?	Rillorta was granted the opportunity to reconcile the financial records. This allows her to compare her records with those of the Financial Audit Team and the Accounting Division of the OCA. The goal is to ensure that the restitution amount is accurate and based on verified shortages.
What are the implications of Judge Madrid being asked to ‘show cause’ for disbarment?	The directive for Judge Madrid to ‘show cause’ means she must present reasons why she should not be disbarred from practicing law. This stems from the finding that her actions violated the Code of Professional Responsibility. If she fails to provide a satisfactory explanation, she could lose her license to practice law.

The Supreme Court’s decision serves as a stark reminder that public office demands the highest standards of integrity and accountability. The consequences for betraying this trust are severe, underscoring the importance of ethical conduct in the judiciary and all branches of government.

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: OFFICE OF THE COURT ADMINISTRATOR V. ROLANDO C. TOMAS AND ANGELINA C. RILLORTA, A.M. No. P-09-2633, January 30, 2018