El Pueblo de Filipinas vs.

Velasquez
G.R. No. 47741, Apr 28, 1941
A provincial treasury assistant cashier is found guilty of malversation of public funds after failing to
provide receipts for various amounts of money received from different organizations, resulting in a
deficit and subsequent reimbursement, leading to a conviction with a mitigating circumstance.

Facts:

Santiago S. Velasquez was a provincial treasury assistant cashier in Pangasinan.

From September 9, 1937, to December 6, 1938, Velasquez received various amounts of money totaling
P1,701.26 from different municipal treasuries.

The funds received included money from the "Red Cross," the "Anti-Tuberculosa," and the "Boy Scouts."

Velasquez failed to provide receipts for these amounts.

Auditors discovered a deficit of P1,701.26 during an examination and audit of the funds under
Velasquez's custody.

Velasquez could not explain the deficit and made several payments to the provincial treasury to
reimburse the defrauded amount.

Issue:

Can Velasquez be found guilty of the crime of malversation of public funds under Article 227 of the
Revised Penal Code based on the admitted facts?

Ruling:

Velasquez is guilty of malversation of public funds.

Velasquez's voluntary restitution of the defrauded amount is considered a special mitigating

circumstance.

Velasquez is sentenced to an indeterminate prison term of six months and one day to four years, two
months, and one day of correctional imprisonment.

Ratio:

When a public official receives money for safekeeping, it becomes public funds.

Previous decisions have established this principle.

Velasquez received funds belonging to various organizations and failed to explain their disappearance.

Therefore, Velasquez is found guilty of malversation of public funds.

Velasquez's voluntary restitution is considered a special mitigating circumstance.

This leads to a reduced sentence for Velasquez.