THREE officers of the Development Bank of the Philippines (DBP) Manila-Nakpil branch have been held liable by the Commission on Audit for the loss of cash amounting to P2,644,800 held in an automated teller machine (ATM) that was cut open by thieves after being damaged in a fire.
An en banc decision of the COA released last week denied the request of the bank officers for relief from accountability, saying their actions were tinged by negligence.
Records showed that a fire broke out on March 18, 2018 at the Waterfront Manila Pavilion Hotel and Casino in Ermita, Manila where an ATM was installed.
The fire incident report released by the Bureau of Fire Protection (BFP) noted that the DBP’s ATM sustained damage, including “accessories and cash content.” However, the bank was not furnished a copy of the Final Investigation Report.
During a cash examination on September 26 to 28, 2018, the supervising auditor assigned to DBP found discrepancies in the inventory of cash, which was traced to the loss of money inside the ATM involved in the casino fire.
DBP Manila-Nakpil branch head Jerwin Fabricante, branch services officer Anthony Paul Marcos, and cashier Mary Rose Castillo, as accountable officers, filed a request for relief from property accountability, apologizing for failure to immediately submit an incident report to the COA.
They explained that they gave priority to the processing of papers to file an insurance claim with the Government Service Insurance System (GSIS) to recover losses from the fire.
The COA-DBP Audit Group recommended approval of the bank officers’ request for relief from accountability in the total amount of P3.14 million covering the P496,533 cost of the ATM and accessories as well as the P2,644,800 cash in it that was lost.
However, the COA en banc only cleared them of liability for the fire damage to the ATM on the ground that it was an unforeseen event that was beyond the control of the bank officers.
Regarding the cash contained in the machine that disappeared, the commission held that the bank executives cannot be exempted from liability as they are not free from negligence to prevent or minimize loss after the fire.
Citing the final report of the BFP, the COA noted that other ATMs by other banks were also in the same location and likewise damaged in the fire. However, the Bank of the Philippine Islands (BPI) and the Land Bank of the Philippines (LBP) pulled out their cash machines, which the DBP did not do.
BFP investigators said the DBP ATM was cut open using an oxy-acetylene torch to gain access and remove the cash inside. The theft happened after the fire was put out, as the DBP ARM technician noted that the machine, although damaged, was still situated upright in its normal position.
“Had the DBP officers exercised prudence and pulled out the ATM machine earlier like what BPI and LBP did, they could have prevented the loss of the cash inside the machine. The foregoing scenario shows negligence on the part of the DBP officers,” the COA said.
For failing to secure the ATM and the money inside, the commission said the three bank officers “failed to exercise the highest degree of diligence” required of them.
“The ATM has money stored in it, which came from the funds deposited by the public. They should have expedited the pull-out of the ATM to prevent loss in the event of robbery. Hence, they should not be exonerated from the liability as to the loss of the cash amounting to P2,644,800,” the COA added.
