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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 334 -
IMPOSING THE PENALTY OF DISMISSAL FROM THE SERVICE WITH FORFEITURE OF
ALL THE BENEFITS UNDER THE LAW OF ATTY. ARTEMIO B. CANA, SR., REGISTER
OF DEEDS FOR CAVITE
This refers to the administrative complaint
filed by the National Bureau of Investigation against Atty. Artemio B.
Cana, Sr., Register of Deeds for Marikina (formerly Register of Deeds
for Cavite), for dishonesty and grave misconduct.
Record shows that the alleged
anomalous and fraudulent acts/conduct complained of was committed by
respondent during his tenure/stint as Register of Deeds for Cavite in
relation to the transfer of a parcel of land consisting of 289,662 sq.
m., located at Dasmariñas, Cavite, covered by Transfer
Certificate of Title (TCT) (11760) RT-19813, and formerly owned by
Serapio Cuenca. The latter sold the subject property on December 1,
1987 to Florinda Estrada who, after payment by Serapio Cuenca of the
capital gains tax and documentary stamps tax and with the issuance of
the corresponding BIR Certificate Authorizing Registration No. 954131
by the BIR, was issued TCT No. 630341. Subsequently, Estrada sold the
same property to the Philippine Communications Satellite Corporation
(Philcomsat, for brevity) on August 2, 1996 for a consideration of
P50,000,000.00 which sale was inscribed on TCT 630341 on August 7,
1996. The vendor, Estrada, paid the amount of P1,448,310.00 as capital
gains tax, as evidenced by a Return Application for Certificate
Authorizing Registration, and the amount of P434,505.00 for documentary
stamps tax. However, as can be gleaned from TCT 630341 it was made to
appear under Entry No. 124 that the amount of P2,500,000.00 was paid as
capital gains tax. On the same day, August 7, 1996, the property was
transferred in the name of Philcomsat which was issued TCT No. 649189.
In charging respondent for grave
misconduct, the National Bureau of Investigation (NBI) alleges that the
government lost a substantial amount of revenue because of the
non-payment of capital gains taxes by Estrada relative to the sale of
the subject property to Philcomsat. Likewise, the government suffered
substantial loss of revenue when title to the property was transferred
from Serapio Cuenca to Florinda Estrada by reason of the payment of
deficient taxes. The revenue losses could not have happened without the
active participation and intercession of respondent who, as Register of
Deeds for Cavite, used his office, power, authority and influence in
having the property transferred from Serapio Cuenca to the latest
owner, Philcomsat, knowing fully well that the taxes had not been paid
as the required documents to have the property transferred were not
presented.
As regards the charge of
dishonesty, complainant alleges that while respondent was in possession
of some documents relative to the sale of the subject property when the
directed his subordinate employee to cause the transfer thereof from
Estrada to Philcomsat, the said documents, however, do not appear to
have been duly recorded much less filed with the Office of the Register
of Deeds of Cavite. Also, respondent made it appear that the BIR issued
a CAR when actually there was none.
In support of its complaint, the
NBI presented as witnesses respondent's subordinate employees at the
Office of the Register of Deeds of Cavite, namely: Josesito B.
Vidallon, Orlando Arbolante, Celso Maligalig, Rene Almario, Rodel F.
Rojas, Bernardo Pau and Jeanette Eclar, whose uncontroverted
testimonies clearly established that respondent personally directed the
preparation of the new title transferring the subject property from
Florinda Estrada to its new owner, Philcomsat, without having the same
pass thru the regular office procedure and even without the submission
of all the documentary requirements/pre-requisites necessary before the
title to the subject property could be transferred to its new owner.
Likewise, it was confirmed that respondent presented to Vidallon some
documents for inscriptions relative to the sale transaction in question
which documents were in turn given back to respondent but the same
could no longer be located.
In exculpation, respondent
denies the accusation. He avers that he never conspired with Estrada
nor with anybody to have the subject property transferred in the name
of Philcomsat without paying the proper taxes. His duty is only
ministerial if the buyer and seller present all the documents and
clearances required by law and have paid the corresponding local and
national taxes or fees. He has no control over the documents at the
Office of the Register of Deeds of Cavite for the said documents are
being kept by the vault keeper or the records custodian. He cited the
testimony of one of his subordinate employees to the effect that TCT
No. 11760 was taken by a certain Atty. Enrique Basa of the Land
Registration Authority (LRA) Investigation Division for transmission to
the NBI. He thus claims that there is a big possibility that these
titles and supporting documents relative to the subject property are in
the hands of other persons.
Further, respondent cited the
resolution of the fact finding committee created by LRA Administrator
Reynaldo Y. Maulit exonerating him from any liability. He further
claims that there has never been an inventory of documents, titles and
records in the Office of the Register of Deeds of Cavite when he
assumed office thereat and he does not have any idea or liability as to
the loss of titles and other pertinent documents. Finally, he stressed
that when he assumed the position of Register of Deeds for Cavite, he
instituted reforms to rectify anomalous office transactions which act
made some people uncomfortable who could have retaliated by filing
malicious accusations and presenting spurious evidence against him.
During the formal investigation,
the Revenue District Officer David Alarcon of the Bureau of Internal
Revenue was subpoenaed to shed light in the investigation. RDO Alarcon
issued a certification to the effect that on August 7, 1996 the amounts
of P434,493.00 and P1,468,310.00 documentary and capital gains tax,
respectively, were paid by Florinda Estrada to the BIR. The
certification likewise states that no other amount was paid by Florinda
Estrada and that no Certificate Authorizing Registration (CAR) was ever
issued by the BIR authorizing the Register of Deeds to transfer the
title of the subject property from Florinda Estrada to Philcomsat.
Respondent, despite being furnished a copy of the said certification,
failed to refute the same.
Senior State Prosecutor Theodore
M. Villanueva was directed to conduct a formal investigation of the
instant administrative complaint. Although respondent was given the
opportunity to present controverting evidence, his counsel, in a motion
dated February 25, 1997, submitted the case for resolution and waived
their right to a formal investigation. Upon evidence on record, SSP
Villanueva found respondent liable for dishonesty and grave misconduct
and recommended respondent's dismissal from the service with forfeiture
of benefits under the law.
After a careful evaluation on
the record of the case, the Secretary of Justice found respondent
administratively liable for the offense charged and recommended
respondent's dismissal from the service with forfeiture of benefits
under the law.
We concur.
Relative to the charge of grave
misconduct, complainant's evidence clearly shows that respondent had a
direct and active participation in the transfer of the subject property
from Florinda Estrada to Philcomsat which we find anomalous under the
following circumstances, to wit: 1) the said transfer was undertaken
without passing thru the regular office procedure, i.e., the documents
relative thereto should have been presented and examined by a land
registration examiner in order that all the necessary documentary
requirements/pre-requisites would have been checked and verified and
cross-checked and cross-verified with their office copies on file; 2)
the transfer was made even without the BIR Certificate Authorizing
Registration (CAR), a required and vital document to have
title/ownership to a piece of land transferred; and (3) that there was
a substantial deficiency in the amount paid as capital gains tax. This
anomalous transfer of the subject property undertaken by respondent
constitutes grave misconduct because not only did it result in revenue
loss to the government but also undermined the integrity of the
government's torrens title system.
As regards the charge of
dishonesty, respondent failed to controvert complainant's evidence that
when respondent directed Vidallon to cause the transfer of the title to
the subject property from Estrada to Philcomsat, respondent presented
some documents relative thereto but nowhere from the records and vault
of the Office of the Register of Deeds of Cavite could the said
documents be found. Also, respondent made it appear that the BIR issued
a CAR when in truth and in fact there was no CAR issued. Respondent's
denial of being in possession of the said documents constitutes
dishonesty on his part considering the positive and uncontroverted
evidence that respondent had the documents and the same were returned
to him (respondent) after he (Vidallon) caused the transfer of the
subject property from Estrada to Philcomsat.
Moreover, we find untenable
respondent's claim that as Register of Deeds his duty is only
ministerial. It should be stressed that respondent's duty as Register
of Deeds becomes ministerial only upon compliance with all the
requisites for registration. It is his bounden duty under the law to
exercise diligence and dedication to the service to protect the
integrity of the government's torrens title system. When respondent
affixed his signature on the TCT, he assured the general public, under
his oath of office, that all the documentary requirements, taxes and
fees were met. However, in the subject transaction, respondent wantonly
disregarded the standard office procedure in causing its transfer from
Florinda Estrada to Philcomsat. By such act of disregard, respondent's
inordinate interest in the transfer of the subject property becomes
evident and suspicious. In fact, such interest was further underscored
when the transfer was made even without the corresponding CAR from the
BIR which is a document vital to the said transfer.
Needless to state, respondent's
claim of having been exonerated by the fact finding committee created
by LRA Administrator Reynaldo Y. Maulit deserves scant consideration.
Worthy of note is the fact that the said inquiry was only in relation
to the transfer of the subject property from Serapio Cuenca to Florinda
Estrada and not the transfer from Florinda Estrada to Philcomsat, the
subject of inquiry in the instant administrative complaint.
Indeed, respondent's
reprehensible act of dishonesty and grave misconduct not only
undermined the public faith in the government's torrens title system,
it also caused substantial revenue loss to the government. While we are
aware of the repercussions in meting the extreme penalty of
respondent's dismissal from the service, we, however, cannot
countenance the anomalous transfer of the subject property which
prejudiced the government, thus, meriting no further compassion.
WHEREFORE, premises considered,
Atty. Artemio B. Cana, Sr., Register of Deeds for Marikina (former
Register of Deeds for Cavite) is hereby found liable for dishonesty and
grave misconduct. Consequently, his dismissal from the service with
forfeiture of all benefits under the law is hereby imposed, effective
fifteen (15) days after his receipt of a copy of this Order pursuant to
Book VII, Sec. 15 of the Administrative Code of 1987.
DONE in the
City of Manila, this 30th day of April, in the year of Our Lord,
nineteen hundred and ninety-seven.
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