Professional Documents
Culture Documents
The Case
Before us is a Petition for Review1 under
Rule 45 of the Rules of Court, assailing the
March 22, 2002 Decision2and the June 26,
2002 Resolution3 of the Court of Appeals
(CA) in CA-GR SP Nos. 56205 & 56467. The
challenged Decision disposed as follows:
"WHEREFORE, the assailed Decision
is AFFIRMED with the following
MODIFICATIONS:
1. Vicente and Rosario
should reimburse Ismael and
The Issues
Petitioners raise the following issues for
our consideration:
"1. a) Whether or not Section 17[,]
Rule 70 of the Rules of Court on
Judgment should apply in the
rendition of the decision in this
case;
b) Whether or not the
Complaint should have been
dismissed;
c) Whether or not damages
including attorneys fees
should have been awarded
to herein petitioners;
First Issue:
Ejectment
Who is entitled to the physical or material
possession of the premises? At the outset,
we stress that this is the main issue in
wholly
approved
of."43 Sarona
v.
44
Villegas described what tolerated acts
means, in this language:
Possession
Petitioners have not given this Court
adequate reasons to reverse the lower
courts dismissal of their contention that
Lots T-78521 and T-103141, respectively,
were allegedly allotted to them as part of
their
inheritance
and
given
in
consideration for past debts.
The right of petitioners to inherit from
their parents is merely inchoate and is
vested only upon the latters demise.
Indisputably, rights of succession are
transmitted only from the moment of
death of the decedent.50 Assuming that
there was an "allotment" of inheritance,
ownership nonetheless remained with
respondents. Moreover, an intention to
confer title to certain persons in the future
is not inconsistent with the owners taking
back possession in the meantime for any
reason deemed sufficient.51 Other than
their self-serving testimonies and their
affidavits, petitioners offered no credible
evidence to support their outlandish claim
of inheritance "allocation."
We also agree with the lower courts that
petitioners failed to prove the allegation
that, through a dation in payment, Lot T78521 had been transferred to the latter as
payment for respondents debts.52 The
evidence presented by petitioners related
only to the alleged indebtedness of the
at
the
Preliminary
Third Issue:
No pronouncement as to costs.
SO ORDERED.
Sandoval-Gutierrez,
Morales, JJ., concur.
Footnotes
1
13
Ibid.
14
Ibid.
17
Ibid.
19
20
Ibid.
10
Ibid.
Presided by Assisting
Norberto P. Mercado.
11
Judge
25
33
26
34
35
27
41
Ibid.
between
petitioners
and
respondents arose. It can be readily
assumed to have transpired not
later than June 6, 1996, the date of
petitioners demand letter, which
became the subject of Civil Case
No. 0594-96 (Demand Letter; rollo,
p. 145). At any rate, an animosity
between the parties was confirmed
by respondents demand letter
dated August 13, 1997, asking
petitioners to vacate the subject
lots (rollo, p. 89), and the
subsequent filing of this case.
50
44
45
53
Ibid.
substantive
agreements
that,
otherwise, only the client has
capacity to make.
56
60
61
57
Supra.
63
59
67
68
74
75
69
71
72
Id., p. 125.
This contention was based on
information
from
an
alleged
barangay councilor of Banay-banay
that no conciliation had transpired
on October 14, 1997, the scheduled
date. Petitioner Teresita Macasaets
Affidavit; rollo, p. 77. In a letter
dated October 14, 1997, addressed
to the barangay captain, it appears
81
GANCAYCO, J.:p
Between the one who has actual possession
of an island that forms in a non-navigable
and non-flotable river and the owner of the
land along the margin nearest the island,
who has the better right thereto? This is
the issue to be resolved in this petition.
The parties to this case dispute the
ownership of a certain parcel of land
located in Sta. Cruz, Tagoloan, Misamis
Oriental with an area of 16,452 square
meters, more or less, forming part of an
island in a non-navigable river, and more
particularly described by its boundaries as
follows:
Republic
SUPREME
Manila
of
the
Philippines
COURT
FIRST DIVISION
North by
the Tagoloan
River,
South by
the Tagoloan
River,
East by the
Tagoloan River
and
West by the
portion
belonging to
Vicente Neri.
Private respondents filed with the Regional
Trial Court of Misamis Oriental 1 an action
to quiet title and/or remove a cloud over
the
property
in
question
against
petitioners.
Respondent Court of Appeals 2 summarized
the evidence for the parties as follows:
The
appellant
[private
respondent Janita Eduave]
claims that she inherited the
land from his [sic] father,
Felomino Factura, together
with his co-heirs, Reneiro
Factura
and
Aldenora
Factura, and acquired sole
ownership of the property by
virtue of a Deed of Extra
Judicial Partition with sale
(Exh. D). The land is
declared for tax purposes
under Tax Decl. No. 26137
(Exh. E) with an area of
16,452 square meters more
or less (Exh. D). Since the
death of her father on May
5, 1949, the appellant had
been in possession of the
property although the tax
declaration remains in the
name of the deceased
father.
001782;
on
the E by line
1-2 by Lot 64;
Pls-799;
on
the S, along
line 2-3-4 by
Saluksok
Creek,
containing an
area of one
thousand two
hundred
eighty
nine
(1,289) square
meters more
or less.
A parcel of
land (Lot No.
62-A, Psd-10001782 being
a portion of
Lot 62, Pls799, Tagoloan
Public
Land
Subdivision)
situated
in
Bo. Sta. Cruz,
Municipality
of Tagoloan,
Province
of
Misamis
Oriental.
Bounded
on
the W, and on
the N along
lines 4-5-1 by
Lot 62-B of
the
subdivision
plan
10-
The
defendants-appellees
[petitioners herein] denied
the claim of ownership of
the appellant, and asserted
that they are the real
owners of the land in
litigation containing an area
of 18,000 square meters
more or less. During the
SO ORDERED.
Narvasa,
Cruz,
Grio-Aquino
Medialdea, JJ., concur.
and
Footnotes
1 Civil Case No. 5890, 10th
Judicial Region, Branch 22,
Cagayan de Oro City, the
Hon. Alfredo J. Lagamon,
Presiding Judge.
2
Fifteenth
Division,
composed of Justices Gloria
C. Paras as Chairperson,
Bonifacio A. Cacdac, Jr.,
as ponente, and Serafin V. C.
129, citing 3
He is deemed a possessor in
bad faith who possesses in
any case contrary to the
foregoing.
Mistake upon a doubtful or
difficult question of law may
be the basis of good faith.
Art. 3. Ignorance of the law
excuses
no
one
from
compliance therewith.
18 The Civil Code provides:
Art. 1137. Ownership and
other real rights over
immovables also prescribe
through
uninterrupted
adverse possession thereof
for thirty years, without
need of title or of good
faith.
19 Art. 459. Whenever the
current of a river, creek or
torrent segregates from an
estate on its bank a known
portion of land and transfers
it to another estate, the
owner of the land to which
the
segregated
portion
belonged
retains
the
The Case
Before us is a Petition for Review1 under
Rule 45 of the Rules of Court, seeking to
set aside the June 27, 2000 Decision 2 and
the January 22, 2001 Resolution3 of the
Court of Appeals4 (CA) in CA-GR SP No.
54667. The dispositive part of the Decision
reads:
"WHEREFORE, the [P]etition is
GRANTED and the RTC [D]ecision
dated 06 May 1999 and the RTC
[O]rder dated 03 August 1999 are
hereby REVERSED and SET ASIDE,
and corollarily, the MCTC [D]ecision
is AFFIRMED." 5
The assailed Resolution denied petitoners
Motion for Reconsideration.
The Facts
The factual antecedents are summarized
by the CA as follows:
Republic
SUPREME
Manila
of
the
Philippines
COURT
THIRD DIVISION
G.R. No. 146815
April 9, 2003
[petitioners]
suffered
actual
damages in the amount of
P3,000,000.00 and P10,000.00 as
attorneys fees.
"In
their
[A]nswer
to
the
[C]omplaint, [respondents] averred
that [petitioners were] not the
owners of the land because they
disposed of it sometime in 1976 as
shown by legal documents. On 02
April 1969, the Land Authority
issued an order of award in favor of
[petitioners],
approving
the
application of Pedro Laurora to buy
the subject Lot 1315-G from the
government. On 01 March 1974,
[petitioners]
requested
the
Department of Agrarian Reform for
the transfer of the lot to Juan
Manaig. Favorably acted upon, the
DAR issued a permit to transfer
dated 03 June 1975 through its
Regional Director Benjamin R.
Estrellado. On 03 July 1975, Juan
Manaig, as transferee and buyer,
paid the required amount of
P10,643.65 under Official Receipt
No. 8304707 to the government as
full payment for the transfer of said
lot to him. On 26 March 1976, the
[petitioners]
as
sellers
and
witnessed by their sons, Efren
Laurora and Dominador Laurora,
executed
a
Kasulatan
ng
Paglilipatan ng Lupa transferring
the land to Juan Manaig as buyer.
On 11 June 1976, the [petitioners]
again witnessed by their sons, Efren
and
Dominador,
executed
a
Kasulatan ng Bilihang Tuluyan or
Deed of Sale wherein they sold Lot
1315-G including all improvements
therein, in favor of Juan Manaig.
The Deed of Absolute Sale was
approved by the Department of
Agrarian Reform on 14 June 1976 in
DAR Approval of Transfer of Rights
signed by DAR Regional Director,
Benjamin R. Estrellado. After the
"x
x
x
[W]hether
[p]rivate
[r]espondent[s] ha[ve] a valid and
legal right to forcibly eject
petitioners from the premises
despite
their
resistance
and
objection, through the use of
arm[ed] men and by bulldozing,
cutting, and destroying trees and
plants planted by petitioners,
without court order, to the damage
and prejudice of the latter."9
The Courts Ruling
The Petition is meritorious.
Main
Physical Possession of the Land
Issue:
Footnotes
1
Rollo, p. 31.
Petitioners Memorandum, p. 5;
rollo, p. 127.
9
17
Id., p. 1006.
20
Republic
SUPREME
Manila
of
the
Philippines
COURT
FIRST DIVISION
G.R. No. 71283 November 12, 1987
MIGUEL ESCRITOR, JR., ANGEL ESCRITOR,
RAMON ESCRITOR, JUANA ESCRITOR,
CONCORDIA ESCRITOR, IRENE ESCRITOR,
MATILDE ESCRITOR, MERCEDES ESCRITOR,
HEIRS OF LUIS ESCRITOR, represented by
RUPERTO ESCRITOR, HEIRS OF PEDO
ESCRITOR, represented by SUSANA
VILLAMENA, LINA ESCRITOR, WENDELINA
GANCAYCO, J.:
This is a petition for review on certiorari
seeking the reversal of the decision of the
Intermediate Appellate Court in AC-G.R.
No. CV-01264-R entitled "Simeon Acuna vs.
Miguel Escritor, Jr., et al," a case which
originated from the Court of First Instance
of Quezon.
The record of the case discloses the
following facts:
Lot No. 2749, located at Atimonan,
Quezon, was the subject of cadastral
proceedings in the Court of First Instance
of Quezon, Gumaca Branch, Miguel
Escritor, as claimant, filed an answer
thereto declaring his ownership over the
lot alleging that he acquired it by
inheritance from his deceased father. 1 As
required, a notice of hearing was duly
published, after which an order of general
default was entered. 2 The lot having
become uncontested, only Miguel Escritor
appeared in order to adduce his evidence
of ownership.
On May 15, 1958, the Court rendered a
decision in the abovementioned case,
Cadastral Case No. 72, adjudicating the lot
with its improvements in favor of claimant
Escritor
and
confirming
his
title
thereto. 3 Immediately thereafter, Escritor
took possession of the property. On July
Footnotes
1 Exhibit
Answer.
"A".
Cadastral
in
"H",
Writ
of
Republic
SUPREME
Manila
of
the
Philippines
COURT
FIRST DIVISION
G.R. No. L-49219 April 15, 1988
SPOUSES CONCEPCION FERNANDEZ DEL
CAMPO
and
ESTANISLAO
DEL
CANTO, plaintiffs-appellees,
vs.
BERNARDA
FERNANDEZ
ABESIA, defendant-appellant.
Geronimo
appellees.
Creer,
Jr.
for
plaintiffs-
GANCAYCO, J.:
Footnotes
1 3 Planiol & Ripert 245;
page 108, Civil Code by
Tolentino, Vol. II; See also
Viuda de Arias vs. Aguilar,
(C.A.) O.G. Supp., Aug. 30,
1941, Page 126, 40 O.G.
15th series, Page 126.
Republic
SUPREME
Manila
of
the
Philippines
COURT
SECOND DIVISION
MENDOZA, J.:
This is a petition for review on certiorari of
the decision, 1 dated October 8, 1992 of
the Court of Appeals affirming the decision
of the Regional Trial Court, Branch 59 of
Makati, Metro Manila, ordering the
ejectment of petitioners from the premises
owned by private respondent.
Petitioners were lessees of a commercial
unit at No. 3086 Redemptorist Street in
Baclaran, Paraque, Metro Manila. The
lease was for a period of five (5) years,
from January 1, 1985 to December 31,
1989. The contract expressly provided for
the renewal of the lease at the option of
the lessees "in accordance with the terms
of agreement and conditions set by the
lessor." Prior to the expiration of the lease,
the parties discussed the possibility of
renewing it. They exchanged proposal and
counterproposal, but they failed to reach
agreement. The dispute was referred to
the barangay captain for conciliation but
WHEREFORE,
premises
considered, judgment is
hereby, rendered as follows:
1.
The
defendants
(herein
petitioners)
are
hereby
given a period
of two (2)
years
extension of
occupancy of
the
subject
premises
starting
the
date of the
filling of the
instant
complaint;
2.
The
defendants
are
hereby
ordered
to
pay
the
plaintiff
(herein
private
respondent)
the sum of
P188,806.00
representing
back rentals
as of the year
1991 and a
monthly
rental
of
P10,000.00
thereafter
until
the
expiration of
the aforesaid
extension of
their
occupancy or
until
the
subject
premises
is
actually
vacated.
3. Defendants
are
hereby
ordered
to
pay
the
plaintiff the
amount
of
P15,000.00 as
attorney's
fees; and
4. Defendants
are
hereby
ordered
to
pay the cost
of suit.
SO ORDERED.
On appeal by both parties, the Regional
Trial Court, Branch 59 of Makati ruled that
the lease was for a fixed period of five (5)
years and that, upon its expiration on
January 1, 1990, petitioners' continued
stay in the premises became illegal. As
provided in Art. 1687 of the Civil Code, the
power of the courts to fix the period of
lease is limited only to cases where the
period has not been fixed by the parties
themselves. The dispositive portion of the
decision3 states:
Premises
considered,
judgment is hereby rendered
modifying
the
appealed
decision, as follows:
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:
3. Dismissing defendants'
counterclaim for lack of
merit; and
4. With costs against the
defendants.
Petitioners appealed to the Court of
Appeals which affirmed the decision. In its
decision, dated October 8, 1992, the Court
of Appeals ordered:
WHEREFORE, except for the
modification
that
the
monthly
rental
that
petitioners
should
pay
private respondent from July
24, 1990 until the latter
finally vacate the premises
in question is reduced to
P7,320.00, the decision of
the respondent court in this
case is AFFIRMED in all other
respects, with costs against
petitioners Jose L. Chua and
Ko Sio Eng.
January 1 to
December 31,
1990
which
would be one
hundred
eighty
thousand
pesos
(P180,000.00)
or a total of
TWO
HUNDRED
TWENTY TWO
THOUSAND
THREE
HUNDRED SIX
PESOS
(222,306,00)
(p. 75 Orig.
Rec).
Then, at the pre-trial of
December 17, 1990, among
the issues proposed by
counsel for plaintiff (now
private respondent) was
whether:
3. defendants
are in arrears
for the rentals
from Dec. 31,
1987
to
January 1989,
in accordance
with
the
contract:
(p. 8, tsn Dec.
17, 1990:
p. 87, id.)
Counsel
for
defendants
(herein petitioners) did not
object to the statement of
issues made by plaintiffs
counsel and instead simply
stated as their own main
V.
in
J.
P.
Republic
SUPREME
Manila
of
the
Philippines
COURT
SECOND DIVISION
G.R. No. L-33422 May 30, 1983
ROSENDO
BALUCANAG, petitioner,
vs.
HON. JUDGE ALBERTO J. FRANCISCO and
RICHARD STOHNER, respondents.
Alfredo C. Estrella for petitioner.
Pascual C. Garcia for respondents.
ESCOLIN, J.:
This petition for review of the decision of
the Court of First Instance of Manila in Civil
Separate Opinions
ABAD
SANTOS, J., concurring
dissenting:
and
Separate Opinions
ABAD
SANTOS, J., concurring
dissenting:
and
Republic
SUPREME
Manila
of
the
Philippines
COURT
FIRST DIVISION
CRUZ, J.:
This is an appeal by way of certiorari from
the decision of the respondent Court of
Appeals which affirmed in toto the ruling
of the trial court in Civil Case No. 0460-P,
the dispositive portion of which read thus:
WHEREFORE, judgment is
hereby rendered declaring
null and void TCT Nos.
14405, 29592, 29593, 29594,
29595, and TCT No. 29593's
derivative titles TCT Nos.
124725, 124726, 124727 and
124729, and ordering the
Register of Deeds for Pasay
City to cancel them and
issue new ones in their stead
in the name of the plaintiff
after segregating from TCT
No. 29593 452 sq. m., the
We agree.
If the riparian owner is entitled to
compensation for the damage to or loss of
his property due to natural causes, there is
all the more reason to compensate him
# Footnotes
1 Exhibit "4," Records, p.
293.
The background
filing of the
summarized in
respondent Court
2 Records, p. 398.
3 Ibid., pp. 2-10.
Republic
SUPREME
Manila
of
the
Philippines
COURT
SECOND DIVISION
G.R. No. L-62943 July 14, 1986
METROPOLITAN
WATERWORKS
AND
SEWERAGE
SYSTEM, petitioner,
vs.
COURT OF APPEALS (Now INTERMEDIATE
APPELLATE COURT) and THE PHILIPPINE
NATIONAL BANK,respondents.
Juan J. Diaz and Cesar T. Basa for
respondent PNB.
San Juan, Africa, Gonzales & San Agustin
Law Offices for respondent PCIB.
Metropolitan
Waterworks
and
Sewerage
System
(hereinafter referred to as
MWSS) is a government
owned
and
controlled
corporation created under
Republic Act No. 6234 as the
successor-in- interest of the
defunct
NWSA.
The
Philippine National Bank
(PNB for short), on the other
hand, is the depository bank
of MWSS and its predecessorin-interest NWSA. Among the
several accounts of NWSA
with PNB is NWSA Account
No. 6, otherwise known as
Account No. 381-777 and
which is presently allocated
No.
010-500281.
The
authorized signature for said
Account No. 6 were those of
MWSS
treasurer
Jose
Sanchez, its auditor Pedro
Aguilar, and its acting
General Manager Victor L.
Recio.
Their
respective
specimen signatures were
submitted by the MWSS to
and on file with the PNB. By
special arrangement with
the PNB, the MWSS used
personalized
checks
in
drawing from this account.
These checks were printed
6. 59554 4-1-69
6,057.60 4-16 69
Payee
Gascom
Engineering
News
8. 59544 3-27-69 Progressive
18,391.20 4-18 69
Const.
By PNB
Int. Inc.
Estrella
Marsan
Rosario
Santos
Enterprises
Bulletin
Rosario
Manila
Chronicle
17. 59588 4-8-69
21,583.00 4-11 69
Treago
Check Date Payee Amount
Date Paid
Tunnel
No. Issued By PNB
18. 59587 4-8-69
120,000.00 4-11-69
Delfin
1. 59546 3-6-69 Raul Dizon P
84,401.00 3-16-69
Santiago
19.
59589
4-10-69
Deogracias 1,257.49 4-16 69
Estrella
cident Inc.
Esla
Antonio
4-29-69
Antonio
Mendoza
17.59588 4-16-69 Arturo
Sison 176,000.00 5-8-69
18.59587 4-16-69 Arturo
Sison 300,000.00 5-12-69
19.59589 4-18-69 Arturo
Sison 122,000.00 5-14-69
20.59594 4-18-69 Arturo
Sison 280,000.00 5-15-69
21.59577 4-14-69
260,000.00 5-16-69
Antonio
Mendoza
22.59601 4-18-69 Arturo
Sison 400,000.00 5-19-69
23.59595 4-28-69 Arturo
Sison 190,800.00 5-21-69
--------------P3,457,903.00
Commerce
(PBC)
and
Philippine Commercial and
Industrial Bank (PCIB) by
dismissing the Third Party
Complaint.
The counterclaims of the
third party defendants are
likewise dismissed for lack
of evidence.
No pronouncement
costs.
as
to
the forgery
authority.
or
want
of
whatsoever
was given to
me.
16. Q: Were
you
not
advised as to
what kind of
paper would
be used in the
check
vouchers?
A: Only as per
sample, sir.
xxx xxx xxx
20. Q: Where
did you buy
this
Hammermill
Safety check
paper?
A: From Tan
Chiong,
a
paper dealer
with
store
located
at
Juan
Luna,
Binondo,
Manila.
(In
front of the
Metropolitan
Bank).
xxx xxx xxx
24. Q: Were
all
these
check
vouchers
printed by you
submitted
NAWASA?
to
act
printing.
of
26. Q: What
did you do
with
these
excess check
vouchers?
A: I keep it
under
lock
and key in my
firing cabinet.
xxx xxx xxx
28. Q: Were
you
not
instructed by
the NAWASA
authorities to
bum
these
excess check
vouchers?
A: No, sir. I
was
not
instructed.
29. Q: What
do you intend
to do with
these excess
printed check
vouchers?
A: I intend to
use them for
future orders
from the
xxx xxx xxx
32. Q: In the
process
of
printing
the
check
vouchers
ordered
by
the NAWASA,
how
many
sheets were
actually
spoiled?
A: I cannot
approximate,
sir. But there
are spoilage in
the process of
printing and
perforating.
33. Q: What
did you do
with
these
spoilages?
A:
Spoiled
printed
materials are
usually
thrown out, in
the
garbage
can.
34. Q: Was
there
any
representativ
e
of
the
NAWASA
to
supervise the
printing
or
watch
the
printing
of
these
check
vouchers?
A: None, sir.
xxx xxx xxx
39. Q: During
the period of
printing after
the
days
work,
what
measures do
you undertake
to safeguard
the mold and
other
paraphernalia
used in the
printing
of
these
particular
orders
of
NAWASA?
A: Inasmuch
as I have an
employee who
sleeps in the
printing shop
and at the
same time do
the guarding,
we just leave
the
mold
attached
to
the machine
and the other
finished
or
unfinished
work
check
vouchers are
left in the
rack so that
the
work
could
be
continued the
following day.
The National Bureau of Investigation
Report dated November 2, 1970 is even
more explicit. Thus
xxx xxx xxx
60.
We
observed also
that there is
some
laxity
and
loose
control in the
printing
of
NAWASA
cheeks.
We
gathered from
MESINA
ENTERPRISES,
the
printing
firm
that
undertook the
printing of the
check
vouchers
of
NAWASA that
NAWASA had
no
representativ
e
at
the
printing press
during
the
process of the
printing and
no particular
security
measure
instructions
adopted
to
safeguard the
interest of the
government in
connection
with printing
of
this
accountable
form.
Another factor which facilitated the
fraudulent encashment of the twenty-three
(23) checks in question was the failure of
the petitioner to reconcile the bank
statements with its own records.
It is accepted banking procedure for the
depository bank to furnish its depositors
bank statements and debt and credit
memos through the mail. The records show
that the petitioner requested the
respondent drawee bank to discontinue the
practice of mailing the bank statements,
but instead to deliver the same to a
certain Mr. Emiliano Zaporteza. For reasons
known only to Mr. Zaporteza however, he
was unreasonably delayed in taking prompt
deliveries of the said bank statements and
credit and debit memos. As a consequence,
Mr. Zaporteza failed to reconcile the bank
statements with the petitioner's records. If
Mr. Zaporteza had not been remiss in his
duty of taking the bank statements and
reconciling them with the petitioner's
records, the fraudulent encashments of the
first checks should have been discovered,
and further frauds prevented. This
negligence was, therefore, the proximate
cause of the failure to discover the fraud.
Thus,
When a person opens a
checking account with a
bank, he is given blank
checks which he may fill out
and use whenever he wishes.
Each time he issues a check,
he should also fill out the
allowed
by
the Resolution
of the Board
of Directors of
the NAWASA
and
the
Treasurer. The
check writer
was
never
placed on my
table. There
is a place for
the
check
write which is
also
under
lock and key.
Q.
Is
Mr.
Pantig
authorized to
allow
unauthorized
persons
to
enter
your
office?
A. No, sir.
Q. Why are
you tolerating
Mr.
Pantig
admitting
unauthorized
persons
in
your office?
A. I do not
want
to
embarrass Mr.
Pantig. Most
of the people
following up
checks
are
employees of
the NAWASA.
A. No, sir.
their vouchers
inside
your
office which
may leakout
confidential
informations
or your books
of
account.
After
being
apprised of all
the
shortcomings
in your office,
as head of the
Cashiers'
Office of the
Treasury
Department
what remedial
measures do
you intend to
undertake?
Q. From the
answers that
you
have
given to us we
observed that
actually there
is laxity and
poor control
on your part
with regards
to
the
preparations
of
check
payments
inasmuch as
you
allow
unauthorized
persons
to
follow
up
A. Time and
again
the
Treasurer has
been calling
our attention
not to allow
interested
persons
to
hand
carry
their voucher
checks and we
are trying our
best and if I
can do it to
follow
the
instructions to
the letter, I
will do it but
unfortunately
the
persons
who
are
Q. Was the
authority
given by the
Board
of
Directors and
the approval
by
the
Treasurer for
employees,
and
other
persons
to
encash their
checks carry
with it their
authority to
enter
your
office?
allowed
to
enter
my
office are my
co-employees
and
persons
who
have
connections
with
our
higher
ups
and I can not
possibly
antagonize
them.
Rest
assured that
even though
that
everybody will
get hurt, I win
do my best
not to allow
unauthorized
persons
to
enter
my
office.
xxx xxx xxx
Q. Is it not
possible
inasmuch as
your office is
in charge of
the posting of
check
payments in
your
books
that leakage
of payments
to the banks
came
from
your office?
A. I am not
aware of it
but it only
takes us a
couple
of
minutes
to
process
the
checks.
And
there
are
cases wherein
every
information
about
the
checks
may
be obtained
from
the
Accounting
Department,
Auditing
Department,
or the Office
of the General
Manager.
Relying on the foregoing statement of Mr.
Ongtengco, the National Bureau of
Investigation concluded in its Report dated
November 2, 1970 that the fraudulent
encashment
of
the
twenty-three
(23)cheeks in question was an "inside job".
ThusWe have all the reasons to
believe that this fraudulent
act was an inside job or one
pulled
with
inside
connivance at NAWASA. As
pointed earlier in this
report, the serial numbers of
these checks in question
conform with the numbers in
current use of NAWASA,
aside from the fact that
these fraudulent checks
were found to be of the
same kind and design as that
OF
Footnotes
* Justice Paras took no part.
Justice Cruz was designated
to sit in the Second Division.