Navallo v Sandiganbayan 234 SCRA 177 (1994)

Facts: Petitioner is the collecting and disbursing officer of Numancia National Vocational School found to have misappropriated public funds for private benefit after a COA audit. He failed to restitute the amount despite COA demands. A warrant of arrest was issued but petitioner pleaded not guilty and invokes his right to custodial investigation since during the COA audit and actual cash count he was made to sign the certification on the fund shortage in the absence of a counsel. He further contends that the shortage of funds was due to the assurance of certain Macasemo to settle his unliquidated cash advance and his failure to do so resulted to the fund shortage.

Issue: Whether or not the right to counsel be invoked during the COA audit

Held: No, the right to counsel could not be invoked during the COA audit since the procedure is not within the ambit of “custodial investigation.” A person may be subject to malversation of funds even in the absence of direct proof of misappropriation as long as there is evidence of fund shortage which the petitioner failed to explain with convincing justification.