(G.R. No. 107382. January 31, 1996)
A portion of the funds of the Province of Tarlac is allocated to the Concepcion Emergency Hospital. The checks were payable to the order of the hospital. The allotment checks were released by the Provincial Treasurer and received by the hospital’s admin officer or cashier.
During the audit, it was discovered that the hospital did not receive 30 allotment checks drawn from the province’s current account with PNB.
They learned that the checks were encashed by Faustino, a retired admin officer and cashier of payee hospital. He was able to withdraw the money by forging the signature of Dr. Canlas, the chief of the payee hospital. All the checks bore the stamp of Associated Bank which reads “All prior endorsements guaranteed ASSOCIATED BANK.”