944 Phil. 544
MARQUEZ, J.:
That between the period from September 2011 to March 2012, in the City of Baguio, Philippines, and within the jurisdiction of this Honorable Court, the above-named accused, by means of deceit and with abuse of confidence, did then and there willfully, unlawfully and feloniously defraud the Philippine Public School Teachers Association (PPSTA) represented by Edgardo Monforte, in the following manner, to wit: the accused being then the Regional Office Staff assigned at PPSTA CAR Regional Office, with the express obligation to collect remittances from DepEd and deposit the amounts in a bank, accept premium and membership fee payments from members and prepare report of collections and disbursements of the region, then and there received the total sum of P88,452.00 from members teachers for and in behalf of the PPSTA-CAR which she was supposed to deposit but the accused once in possession of the said amount, misappropriate(d), misapplied and convert(ed) the said amount. to her own personal use and benefit, and despite demands for the return of the said amount, the accused failed, refused and neglected to do so, to the damage and prejudice of the offended party in the aforementioned amount of EIGHTY EIGHT THOUSAND FOUR HUNDRED FIFTY TWO (P88,452.00) PESOS, Philippine Currency.The prosecution presented Edgardo Dela Cruz Monforte, former Internal Auditor and now the Chief Accountant of PPSTA (Monforte); Fernando Tamondong (Tamondong), a retired teacher and member of PPSTA; and Nancy Dumbab (Dumbab), also a retired teacher and member of PPSTA.[7] It also presented petitioner Medina's employment contract, various acknowledgment receipts and statements of account purportedly issued by her to PPSTA's members, sworn affidavits of PPSTA members claiming that petitioner Medina failed to remit their payments to PPSTA, the notice to explain and notice of preventive suspension PPSTA sent to petitioner Medina, and the Report of the PPSTA Ad Hoc Committee Re CAR-Sub-Office Unremitted Collections.[8]
CONTRARY TO LAW.[6]
WHEREFORE, premises considered the Court finds accused Danica Medina Guilty beyond reasonable doubt of Estafa under Article 315, paragraph (1), sub-paragraph (b) of the Revised Penal Code. She is hereby sentenced to an indeterminate penalty of imprisonment ranging from four (4) years and two (2) months of prision correccional as minimum to fourteen (14) years of reclusion temporal. The accused is directed to pay private complainant the amount of P83,732.40. A legal interest of 6% per annum is imposed on the total judgment award from the finality of this Decision until its full satisfaction.The RTC gave weight to the acknowledgment receipts allegedly issued by petitioner Medina and presented by the prosecution, and held that her failure to account for the PPSTA members' payments constituted circumstantial evidence of misappropriation:
SO ORDERED.[27]
From the evidence presented, the prosecution has established that accused Medina received in trust monies consisting of payments for insurance premiums and membership dues of teacher-members as evidenced by acknowledgement receipts issued by the accused to the member-teachers. Accused as an employee of PPSTA has the obligation to remit and deposit the same to the designated bank for the account of PPSTA. She did not however deposit the contributions and premiums she received from member-teachers to the damage and prejudice of PPSTA.On appeal, the CA rendered its Decision[29] dated 22 June 2020 affirming the RTC Decision with a modification as to the penalty.[30] The dispositive portion of the CA Decision reads:
x x x x
Accused was supposed to deposit the premium and membership fee payments from member-teachers for and in behalf of PPSTA CAR Regional Office but once in possession of the said amounts, she misappropriated, misapplied and converted the said amounts to her own personal use and benefit to the prejudice of PPSTA. Despite demands for the return of said amount, accused failed to return the said amount. Failure to account upon demand for funds or property held in trust is circumstantial evidence of misappropriation.[28] (Emphasis supplied)
WHEREFORE, the appeal is DENIED. The decision of the Regional Trial Court of Baguio City, Branch 6 dated June 30, 2017 is AFFIRMED with MODIFICATION. Accused-appellant Danica L. Medina is found guilty beyond reasonable doubt of estafa under Article 315, paragraph 1 (b) of the Revised Penal Code, as amended, and sentenced to suffer the indeterminate penalty of four (4) months of arresto mayor, as minimum, to one (1) year and eight (8) months of prision correccional, as maximum. The accused-appellant is ordered to pay the sum of P83,732.40 to private complainant Philippine Public School Teachers Association Inc. (PPSTA) plus interest at the legal rate of six percent (6%) per annum from the finality of this decision until full payment.The CA found that the four elements of estafa under Art. 315, par. (1)(b), RPC, were present in this case:
SO ORDERED.[31]
The CA held that petitioner Medina was a trustee of the payments she received from the PPSTA members, and that her failure to account for these payments or to return them on demand was circumstantial evidence of misappropriation:
- Money, goods or other personal property is received by the offender in trust or on commission, or for administration, or under any obligation involving the duty to make delivery of or to return it;
- That there be misappropriation or conversion of such money or property by the offender, or denial on his or her part of such receipt;
- Such misappropriation or conversion or denial is to the prejudice of another; and
- There is demand by the offended party to the offender.[32]
Accused-appellant through her employer, PPSTA, received sums of money from the members-teachers in trust for the latter's payment of insurance premiums and membership dues in PPSTA. Accused-appellant in her capacity as Regional Office Staff assigned at PPSTA CAR Regional Office had the obligation as trustee of the funds to account for the money received from the members-teachers, by remitting or depositing the money to the designated bank for the account of PPSTA. After receiving the sums of money as evidenced by acknowledgment receipts issued by the accused-appellant to the members-teachers, the former failed to comply with her obligation to deposit the same for the account of PPSTA. The failure to account upon demand, for funds held in trust, is circumstantial evidence of misappropriation. AccusedÂ-appellant failed to account for, upon demand, the sums of money of members-teachers of PPSTA which was received by her in trust. This constitutes circumstantial evidence of misappropriation or conversion to accused-appellant's own personal use. The failure to return upon demand the properties which one has the duty to return is tantamount to appropriating the same for his own personal use.[33] (Emphasis supplied)However, the CA modified the penalty pursuant to Section 85, Republic Act No. 10951 (RA 10951),[34] which amended Art. 315, RPC, as follows:
Section 85. Article 315 of the same Act; as amended by Republic Act No. 4885, Presidential Decree No. 1689, and Presidential Decree No. 818, is further amended to read as follows:The CA applied Sec. 85, RA 10951, and the Indeterminate Sentence Law to the penalty imposed on petitioner Medina:Article 315. Swindling (estafa). – Any person who shall defraud another by any of the means mentioned hereinbelow shall be punished by:
x x x x
3rd. The penalty of arresto mayor in its maximum period to prision correccional in its minimum period if such amount is over Forty thousand pesos (P40,000.00) but does not exceed One million two hundred thousand pesos (P1,200,000.00); and
4th. By arresto mayor in its maximum period, if such amount does not exceed Forty thousand pesos (P40,000.00). x x x
If the amount of the fraud is over Forty thousand pesos (P40,000.00) but does not exceed One million two hundred thousand pesos (P1,200,000.00), the imposable penalty is arresto mayor in its maximum period to prision correccional in its minimum period. This has a range of four (4) months and one (1) day to two (2) years and four (4) months; with a minimum period of four (4) months and one (1) day to one (1) year; a medium period of one (1) year and one (1) day to one (1) year and eight (8) months; and a maximum period of one (1) year, eight (8) months and one (1) day to two (2) years and four (4) months.The CA denied reconsideration.[36] Hence, this Petition.
Applying the Indeterminate Sentence Law (ISL) and there being no mitigating or aggravating circumstances in the case, the maximum imposable penalty for each count should be the penalty prescribed by law in its medium period which is one (1) year and one (1) day to one (1) year and eight (8) months. The minimum term, which is left to the sound discretion of the court, should be within the range of the penalty next lower than the aforementioned penalty, which is arresto mayor in its minimum and medium periods. This has a range of one (1) month and one (1) day to four (4) months. Thus, applying the provisions of RA 10951, as well as the Indeterminate Sentence Law, and taking into consideration that the amount defrauded is P83,732.40, accused-appellant must be sentenced to suffer the indeterminate penalty of four (4) months of arresto mayor, as minimum, to one (1) year and eight (8) months of prision correccional, as maximum.[35] (Emphasis supplied; citations omitted)
[T]he material possession of an employee is adjunct, by reason of his employment, to a recognition of the juridical possession of the employer. So long as the juridical possession of the thing appropriated did not pass to the employee-perpetrator, the offense committed remains to be theft, qualified or otherwise. Hence, conversion of personal property in the case of an employee having mere material possession of the said property constitutes theft, whereas in the case of an agent to whom both material and juridical possession have been transferred, misappropriation of the same property constitutes Estafa.[48] (Emphasis supplied)In Balerta v. People,[49] the Court found that juridical possession as an element of the crime of estafa by misappropriation was not present because the accused was a cash custodian, with no independent right or title to the funds received:
In the case at bench, there is no question that the petitioner was handling the funds lent by Care Philippines to BABMPC. However, she held the funds in behalf of BABMPC. Over the funds, she had mere physical or material possession, but she held no independent right or title, which she can set up against BABMPC. The petitioner was nothing more than a mere cash custodian. Hence, the Court finds that juridical possession of the funds as an element of the crime of estafa by misappropriation is absent in the instant case.[50] (Emphasis and underscoring supplied)In Reside v. People,[51] the Court came to a similar conclusion and held that the accused, a school principal tasked to receive tuition fees and forward these to the school, did not have juridical possession over the funds received:
In the case at bench, it cannot be gainsaid that petitioner, in addition to her duties as principal, was authorized to receive or collect matriculation fees from the parents and/or students enrolled in TGWSI. Per a verbal agreement with De Dios, petitioner shall forward all payments received together with the remittance voucher slips to the school. As it happens, the money merely passes into petitioner's hands and her custody thereof is only until the same is remitted to the school. Consequently, petitioner, as principal and temporary cash custodian of TGWSI, acquires only physical or material possession over the unremitted funds. Thus, being a mere custodian of the unremitted tuition fees and not, in any manner, an agent who could have asserted a right against TGWSI over the same, petitioner had only acquired material and not juridical possession of such funds and consequently, cannot be convicted of the crime of estafa as charged.[52] (Emphasis supplied; citations omitted)The prosecution alleged that petitioner Medina was responsible for collecting remittances from the Department of Education and accepting premium payments from PPSTA members, and depositing these payments in PPSTA's bank account, as instructed by the PPSTA Treasurer.[53] The record is bereft of any allegation or proof that petitioner Medina had any independent right or title to these funds that she could set up as against PPSTA. Contrary to the findings of the CA, petitioner Medina was not a "trustee" of the PPSTA members' payments, as she received these sums as an employee of, and on behalf of, her employer. Consequently, petitioner Medina only had material and not juridical possession of these funds, and she cannot be convicted for estafa under Art. 315(b)(l), RPC.
Pursuant to Section 20, a private document may be authenticated by: the person who executed it, the person before whom its execution was acknowledged, any person who was present and saw it executed, the person who after its execution, saw it and recognized the signature, being familiar thereto or an expert, or the person to whom the parties to the instrument had previously confessed execution thereof. In this case, neither Rene nor P/Ens Pabico saw the execution of the letter. Though Rene claimed that he was personally familiar with Galileo's signature, he did not explain why or how he became familiar with it. As such, We cannot give credence to Rene's claim because it does not have any basis. Aside from Rene and P/Ens Pabico, no other witness attempted to authenticate the letter. Thus, respondent failed to establish the due execution and authenticity of the letter.[62] (Emphasis supplied)While Monforte enumerated the various acknowledgment receipts, payment slips, and statements of account allegedly issued by petitioner Medina in his direct testimony,[63] he did not authenticate them. He did not claim to have seen the execution of the receipts, nor did he explain why or how he became familiar with petitioner Medina's signature. Only the Statement of Account signed by petitioner Medina and authenticated by Tamondong, indicating the former's receipt of PHP 1,938.00 from Tamondong,[64] and the UCPB Payment Slip also signed by petitioner Medina and authenticated by Dumbab, indicating the former's receipt of PHP 2,040.00 from Dumbab,[65] were properly admitted into evidence by the RTC.
It is a basic rule in evidence that a witness can testify only on the facts that he knows of his own personal knowledge, i.e., those which are derived from his own perception. Otherwise, it is hearsay evidence. In Country Bankers Insurance Corporation v. Lianga Bay and Community Multi-Purpose Cooperative, Inc., the Court held:It is settled that a witness can testify only on the facts that he or she knows of his or her own personal knowledge, i.e., those which are derived from his or her own perception.[69] A witness may not testify on what he or she merely learned, read or heard from others because such testimony is considered hearsay and may not be received as proof of the truth of what he or she has learned, read or heard.[70] Hence, as a general rule, hearsay evidence is inadmissible in courts of law.[71] This is because of serious concerns on their trustworthiness and reliability; such evidence, by their nature, are not given under oath or solemn affirmation and likewise have not undergone the benefit of cross-examination to test the reliability of the out-of-Âcourt declarant on which the relative weight of the out-of-court statement depends.[72]A witness can testify only to those facts which he knows of his personal knowledge, which means those facts which are derived from his perception. Consequently, a witness may not testify as to what he merely learned from others either because he was told or read or heard the same. Such testimony is considered hearsay and may not be received as proof of the truth of what he has learned. Such is the hearsay rule which applies not only to oral testimony or statements but also to written evidence as well.While Rogelio's Affidavit of Loss is considered a public document, it is still classified as hearsay evidence. The reason behind this classification is explained in the case of Republic v. Spouses Gimenez:Basic is the rule that, while affidavits may be considered as public documents if they are acknowledged before a notary public, these Affidavits are still classified as hearsay evidence. The reason for this rule is that they are not generally prepared by the affiant, but by another one who uses his or her own language in writing the affiant's statements, parts of which may thus be either omitted or misunderstood by the one writing them. Moreover, the adverse party is deprived of the opportunity to crossÂ-examine the affiants. For this reason, affidavits are generally rejected for being hearsay, unless the affiants themselves are placed on the witness stand to testify thereon. (Underscoring supplied)As Rogelio did not take the witness stand, he neither authenticated his Affidavit of Loss nor was he cross-examined. Although generally invoked in criminal cases, the importance of cross-Âexamination to test the truthfulness of statements, as well as elicit all important facts bearing upon the issue from a witness, equally applies to non-criminal proceedings.[68] (Emphasis supplied; citations omitted)
Based on Monforte's testimony on cross-examination, it appears that these findings were based on (1) the lack of deposit slips submitted to the main office of PPSTA, corresponding to the acknowledgment receipts allegedly issued by petitioner Medina; (2) the lack of official receipts issued by the main office, corresponding to the acknowledgment receipts allegedly issued by Medina; and (3) the ledgers of the members, reflecting their respective contributions:
Q16: You also mentioned about the result of the examination of the Ad Hoc Committee that Medina did not deposit and remit collections in the amount of PHP88,452.00 what is your basis in saying so? A16: The findings were stated in the Report of the Ad Hoc Committee Re CAR Sub-Office Unremitted Collections dated July 18, 2012, of which I was a member..[73] (Emphasis supplied)
The Court acknowledges that direct evidence is not necessary for a judgment of conviction. Guilt may be established by circumstantial evidence, provided: (1) there is more than one circumstance; (2) the facts from which the inferences are derived are proven; and (3) the combination of all circumstances is such as to produce conviction beyond reasonable doubt. As provided in A.M. No. 19-08-15-SC, "inferences cannot be based on other inferences." Conviction must be based on strong, clear, and compelling evidence.[75] In addition, the evidence presented must exclude the possibility that some other person committed the crime; otherwise, acquittal on the ground of reasonable doubt is warranted.[76]
Q: As you stated earlier, these payments upon receipt by Danica Medina, she issues an acknowledgment receipt? A: Yes sir. Q: With the corresponding deposit slips? A: The acknowledgment receipt only sir because deposit will be made eventually. Q: And now who made the deposit? A: It should be Danica Medina. Q: And where is the depository bank? A: UCPB sir. Q: And was there any evidence to show or proof that indeed there were no deposits made by Danica concerning these contributions? A: there were no deposit slips which were validated and that had been submitted to the main office. Q: So because of this lack of deposit slip, you already presumed that the collections were pocketed by Danica Medina? A: We also verified from the head office and there were no official receipts issued corresponding to the acknowledgment receipts issued by Danica Medina. And we also verify [sic] the ledgers of the members who paid so there were no payments posted to the ledgers. Q: And who is holding that ledger? A: The membership department sir. They are incharge [sic] of updating the payments of the members. Q: So this ledger is with the sub-office or with the main office? A: The main office.[74] (Emphasis supplied)
Concededly, the evidence of the defense is weak and uncorroborated. This, however, cannot be used to advance the cause of the prosecution as the evidence for the prosecution must stand or fall on its own weight and cannot be allowed to draw strength from the weakness of the defense. Moreover, when the circumstances are capable of two or more inferences, as in this case, such that one of which is consistent with the presumption of innocence and the other is compatible with guilt, the presumption of innocence must prevail and the court must acquit.[78] (Emphasis supplied; citation omitted)The above ruling is fully in accord with the principle that in all criminal prosecutions, it is the prosecution that bears the burden to establish the guilt of the accused beyond reasonable doubt. In discharging such burden, the prosecution has the duty to prove each element of the crime charged in the information to warrant a finding of guilt for that crime or any other crime that is necessarily included therein.[79]