It is factual and evidentiary. It does not mean bad judgment or negligence because it imports a dishonest purpose or some moral obliquity and conscious wrongdoing. It means breach of a known duty through some ill motive or interest. It partakes of the nature of fraud. Inability to pay obligation is not synonymous with fraud. – Magaling vs. Peter Ong
Bautista vs. Salonga Digest
G.R. No. 86439, 13 April 1989 Facts In August 1987, President Cory, through a letter, designated Mary Bautista first as “Acting Chairman of CHR” then