The Sandiganbayan has affirmed the conviction for malversation of public funds involving P4.08 million in 1997 of the former provincial cashier of Benguet.

Affirmed were the judgments of conviction in 12 cases of former cashier IV Esther S. Pagano who was sentenced by the regional trial court (RTC) to prison terms ranging from two to seven years in 11 cases, and from 10 to 16 years in one case.

Pagano was convicted when she incurred cash shortage of P1,051,124.17 and P3,029,675.40 or a total of P4,080,799.57.  She was responsible for collecting cash and checks under the province’s General Fund then depositing these with the depository banks maintained by the province of Benguet.

However, the trial court found that the shortages were incurred because of Pagano's failure to issue official receipts for the purpose of acknowledging several checks intended as interest payments.

Pagano appealed the trial court’s ruling before the anti-graft court.  She claimed that the RTC erred in convicting her because the mandatory element of misappropriation or conversion is absent in this case.

The Sandiganbayan disagreed. "The prosecution proved all the elements of malversation beyond reasonable doubt," it said in its decision dated Dec. 20, 2023.

"Time and again, the Supreme Court has emphasized that an accountable public officer may be convicted of malversation even if there is no direct evidence of misappropriation and the only evidence is that there is a shortage in his/her accounts which he/she has not been able to explain satisfactorily," the anti-graft court said.

The 36-page decision was written by Associate Justice Maria Theresa V. Mendoza-Arcega with the concurrence of Chairperson Associate Justice Rafael R. Lagos and Associate Justice Maryann E. Corpus-Mañalac.