GR No.

158413 February 8, 2012

Melchor Mallare, et.al., petitioners
Vs.
Sandiganbayan, et.al., respondents

Mendoza, J.:
Facts: Melchor M. Mallare, Mayor of Infanta, and Elizabeth M. Gosudan, Munisipal
Treasurer of Infanta, take or misappropriate, or permit any other person to take wholly
or partially, public funds in the custody of the Municipal Treasurer. The audit report
stated the following amount of the said public funds: (1) P995,686.09 for unlawful
personal loans to several municipal officials and employees including themselves; (2)
P291,421.31 for payments without the requisite appropriation; and (3) P200,000 for
withdrawals recorded as cash disbursement. Petitioners restituted the amount of
P110,000.00. A written demand was made directed to the petitioner to pay the shortage.

Issue: (1) Whether or not accused Petitioners committed a crime of Malversation of

Public Funds.
(2) Whether or not accused Mayor Mallare has conspired with his co-accused Treasurer
Gosudan in the commission of the crime of Malversation of Public Funds.

Ruling: (1) Yes. The elements of Malvesation of Public Funds are: 1. That the offender is
a public officer; 2. That he had custody or control of funds or property by reason of the
duties of his office; 3. That those funds or property were public funds or property for
which he was accountable; and 4. That he appropriated, took, misappropriated or
consented or, through abandonment or negligence, permitted another person to take
them.
Municipal Mayor and Treasurer are public officer which had the control to the
said public funds. They permitted the use of funds in use of unlawful personal loans.
Thus, petitioners committed the crime of malversation of public funds.

(2) Yes. The acceptance by Treasurer Gosudan of the loan amount without any
supporting official voucher is proof that there was a conspiracy in the illegal
disbursement of the subject loan amounts.