EN BANC
G.R. No. 247228 (Formerly UDK 16410), March 02, 2021
HAGONOY WATER DISTRICT, CELESTINO S. VENGCO, AND REMEDIOS M. OSORIO, Petitioners, v. COMMISSION ON AUDIT (COA), Respondent.
D E C I S I O N
LOPEZ, M., J.:
This Petition for Certiorari1 under Rule 64, in relation to Rule 65, of the Revised Rules of Court, questions Decision No. 2017-4862 dated December 28, 2017 and Resolution3 dated November 26, 2018 of respondent Commission on Audit (COA).
WHEREFORE, premises considered, we concur and affirm the stand taken by the ATL of HWD and Supervising Auditor of the Water District Audit Group as stated under ND No. 2013-001-HWD(2012) in the amount of [P]582,000.00; and ND No. 2013-002-HWD(2012) in the amount of [P]150,000. Consequently, the herein appeal for the lifting of the subject disallowance, is hereby DENIED.25 (Emphasis in the original.)Aggrieved, petitioners reiterated their arguments in a Petition for Review26 filed before the COA Proper.
WHEREFORE, premises considered, the Petitions for Review of the Commission on Audit Regional Office No. III Decision No. 2014-84 dated October 9, 2014 are hereby DENIED for lack of merit. Accordingly, Notice of Disallowance (ND) Nos. 2013-001-HWD(2012) and 2013-002-HWD(2012), both dated November 14, 2013, on the payment of anniversary allowance and rice allowance to the officials and employees of Hagonoy Water District (HWD) for calendar year 2012 amounting to [P]582,000.00, and additional allowances to the members of the Board of Directors (BOD) of HWD, amounting to [P]150,000.00, respectively, are AFFIRMED. However, the passive recipients of the disallowed benefits are not required to refund the amount received in good faith.For failure to raise new matters and show sufficient ground to justify a reconsideration of the COA Decision No. 2017-486, petitioners' motion for reconsideration was denied in the COA Proper Resolution29 dated November 26, 2018. Thus, the HWD Board of Directors issued Board Resolution No. 00530 dated February 27, 2019, authorizing Vengco to file this Petition, challenging the COA Proper Decision No. 2017-486.
The Supervising Auditor and the Audit Team Leader are directed to issue a Supplemental ND against the members of the BOD of HWD who issued resolutions relative to the grant of the disallowed transactions.
The Prosecution and Litigation Office, Legal Services Sector, this Commission, is hereby directed to forward the case to the Office of the Ombudsman for investigation and filing of appropriate charges, if warranted, against the persons liable for the transactions.28 (Emphasis in the original.)
SEC. 12. Consolidation of Allowances and Compensation. - All allowances, except for representation and transportation allowances; clothing and laundry allowances; subsistence allowance of marine officers and crew on board government vessels and hospital personnel; hazard pay; allowances of foreign service personnel stationed abroad; and such other additional compensation not otherwise specified herein as may be determined by the DBM, shall be deemed included in the standardized salary rates herein prescribed. Such other additional compensation, whether in cash or in kind, being received by incumbents only as of July 1, 1989 not integrated into the standardized salary rates shall continue to be authorized. (Emphasis supplied.)Plainly, upon the effectivity of RA No. 6758 on July 1, 1989, all allowances of government officials and employees, including those in the GOCCs, are deemed included in the standardized salary rates.32 This rule is grounded upon the distinct policy of eliminating multiple allowances and other incentive packages, which resulted in inequitable differences of compensation among government personnel.33
Section 17. Salaries of Incumbents. - Incumbents of positions presently receiving salaries and additional compensation/fringe benefits including those absorbed from local government units and other emoluments, the aggregate of which exceeds the standardized salary rate as herein prescribed, shall continue to receive such excess compensation, which shall be referred as transition allowance. The transition allowance shall be reduced by the amount of salary adjustment that the incumbent shall receive in the future.Verily, other than those specifically enumerated in the first sentence of Section 12 of RA No. 6758, sub-paragraphs 5.436 and 5.537 of DBM Corporate Compensation Circular (CCC) No. 1038 dated February 15, 1999 allowed the continuous grant of additional benefits "[after June 30, 1989] only [to] incumbents of positions x x x, who are authorized and actually receiving such allowances [or] benefits as of [that] date."39 This is consistent with the policy of non-diminution of pay adopted by the legislature in crafting the standardization law to protect the interest of employees who are already receiving certain allowances when the law was enacted. We stress that the Court has invariably construed the qualifying date to be July 1, 1989 or the effectivity date of RA No. 6758, in determining whether an employee was an incumbent and actually receiving additional non-integrated remunerations to be continuously entitled to them.40 In Agra v. Commission on Audit,41 which was notably cited by petitioners in their Appeal Memorandum,42 the Court rationalized the incumbency requirement in this wise: "if a benefit was not yet existing when the law took effect on July 1, 1989, there [is] nothing to continue and no basis for applying the policy [of non-diminution of pay]."43
The Court has previously held that practice, no matter how long continued, cannot give rise to any vested right if it is contrary to law. The erroneous application and enforcement of the law by public officers does not estop the Government from malting a subsequent correction of such errors. Where the law expressly limits the grant of certain benefits to a specified class of persons, such limitation must be enforced even if it prejudices certain parties due to a previous mistake committed by public officials in granting such benefit.45 (Emphasis supplied; citations omitted.)
Liability to Refund the Disallowed Amounts |
Endnotes:
1Rollo, pp. 3-14.
2Id. at 18-29.
3 See Commission on Audit En Banc Notice No. 2019-024, id. at 30.
4 DECLARING A NATIONAL POLICY FAVORING LOCAL OPERATION AND CONTROL OF WATER SYSTEMS; AUTHORIZING THE FORMATION OF LOCAL WATER DISTRICTS AND PROVIDING FOR THE GOVERNMENT AND ADMINISTRATION OF SUCH DISTRICTS; CHARTERING A NATIONAL ADMINISTRATION TO FACILITATE IMPROVEMENT OF LOCAL WATER UTILITIES; GRANTING SAID ADMINISTRATION SUCH POWERS AS ARE NECESSARY TO OPTIMIZE PUBLIC SERVICE FROM WATER UTILITY OPERATIONS, AND FOR OTHER PURPOSES; signed on May 25, 1973.
5Rollo, p. 4.
6Id. at 35.
7Id. at 36-37.
8Id. at 5.
9Id. at 38-41.
10 AUTHORIZING THE GRANT OF ANNIVERSARY BONUS TO OFFICIALS AND EMPLOYEES OF GOVERNMENT ENTITIES; signed on March 28, 1996.
11 AO No. 263, Par. 2.5 states "[p]ayment of the Anniversary Bonus shall be in the amount not exceeding [P]3,000.00 each employee provided that the employee has rendered at least one (1) year of service in the same agency as of the date of the milestone year."
12 SEC. 12. Consolidation of Allowances and Compensation. - All allowances, except for representation and transportation allowances; clothing and laundry allowances; subsistence allowance of marine officers and crew on board government vessels and hospital personnel; hazard pay; allowances of foreign service personnel stationed abroad; and such other additional compensation not otherwise specified herein as may be determined by the DBM, shall be deemed included in the standardized salary rates herein prescribed. Such other additional compensation, whether in cash or in kind, being received by incumbents only as of July 1, 1989 not integrated into the standardized salary rates shall continue to be authorized.
13 AN ACT PRESCRIBING A REVISED COMPENSATION AND POSITION CLASSIFICATION SYSTEM IN THE GOVERNMENT AND FOR OTHER PURPOSES; effective on July 1, 1989.
14 GUIDELINES ON THE DISPOSITION/RESOLUTION OF APPEALS/PETITIONS FOR RECONSIDERATION OF VARIOUS DISALLOWANCES ON THE BENEFITS AND ALLOWANCES RECEIVED BY MEMBERS OF THE BOARD OF DIRECTORS, OFFICIALS AND EMPLOYEES OF WATER DISTRICTS; approved on September 14, 2004.
15 COA RESOLUTION No. 2004-006:x x x x
2. Allowances and benefits of organic personnel of water districts who were incumbents as of July 1, 1989 and were receiving such allowances and benefits shall be allowed in audit Conversely, those hired after that date including those hired to the positions vacated by said incumbents shall not be entitled to said allowances and benefits;
3. Allowances and benefits granted after January 23, 2002 other than those allowed under the Salary Standardization Law as implemented by DBM Corporate Compensation Circular No. 10 shall be disallowed in audit[.]
16 This was not attached in the Petition as it was not questioned herein; rollo, p. 5.
17 SEC. 13. Compensation. - Each director shall receive per diem to be determined by the Board, for each meeting of the Board actually attended by him, but no director shall receive per diems in any given month in excess of the equivalent of the total per diem of four meetings in any given month.
Any per diem in excess of One hundred fifty, pesos (P150.00) shall be subject to the approval of the Administration. In addition thereto, each director shall receive allowances and benefits as the Board may prescribe subject to the approval of the Administration.
18 AN ACT FURTHER AMENDING PRESIDENTIAL DECREE NO. 198, OTHERWISE KNOWN AS "THE PROVINCIAL WATER UTILITIES ACT OF 1973[,"] AS AMENDED; effective on April 2, 2004.
19 IMPLEMENTING GUIDELINES ON NEW SET OF PER DIEMS OF WATER DISTRICT BOARD OF DIRECTORS; signed on May 21, 2002.
20 Appeal Memorandum on ND No. 2013-001-HWD(2012); rollo, pp. 42-50.
21Id. at 45-47.
22Id. at 51-55.
23Supra note 13.
24Supra note 18.
25Rollo, p. 55.
26Id. at 56-70.
27Supra note 2.
28Rollo, pp. 27-28.
29Supra note 3.
30Rollo, p. 15.
31Id. at 7-12.
32Maritime Industry Authority v. Commission on Audit, 750 Phil. 288, 314-315 (2015).
33Ambros v. Commission on Audit, 501 Phil. 255, 279 (2005).
34Maritime Industry Authority v. Commission on Audit, supra at 326.
35Philippine International Trading Corporation v. Commission on Audit, 461 Phil. 737, 748 (2003).
36 5.4 The following allowances/fringe benefits which were authorized to GOCCs/GFIs under the standardized Position Classification and Compensation Plan prescribed for each of the five (5) sectoral groupings of GOCCs/GFIs pursuant to P.D. No. 985, as amended by P.D. No. 1597, the Compensation Standardization Law in operation prior to R.A. No. 6758, and to other related issuances are not to be integrated into the basic salary and allowed to be continued after June 30, 1989 only to incumbents of positions who are authorized and actually receiving such allowances/benefits as of said date, at the same terms and conditions provided in said issuances:chanroblesvirtualawlibrary37 5.5 The following allowances/fringe benefits authorized to GOCCs/GFIs pursuant to the aforementioned issuances are not likewise to be integrated into the basic salary and allowed to be continued only for incumbents of positions as of June 30, 1989 who are authorized and actually receiving said allowances/benefits as of said date at the same terms and conditions prescribed in said issuances:chanroblesvirtualawlibrary
5.4.1 Representation and Transportation Allowances (RATA); 5.4.2 Uniform and Clothing Allowance; 5.4.3 Hazard Pay as authorized by law; 5.4.4 Honoraria/additional compensation fur employees on detail with special projects or interagency undertakings; 5.4.5 Honoraria for services rendered by researchers, experts and specialists who are of acknowledged authorities in their fields of specialization; 5.4.7 Overtime Pay as authorized by law; 5.4.8 Laundry and subsistence allowances of marine officers and crew on board GOCCs/GFIsowned vessels and used in their operations, and of hospital personnel who attend directly to patients and who by nature of their duties are required to wear uniforms; 5.4.9 Quarters Allowance of officials and employees who are entitled to the same; 5.4.10 Overseas Living Quarters and other allowances presently authorized for personnel stationed abroad; 5.4.11 Night Differential of personnel on night duty; 5.4.12 Per Diems of members of the governing Boards of GOCCs/GfIs at the rate as prescribed in their respective Charters; 5.4.13 Flying Pay of personnel undertaking aerial flights; 5.4.14 Per Diems/Allowances of Chairman and Members/Staff of collegial bodies and Committees; and 5.4.15 Per Diems/Allowances of officials and employees on official foreign and local travel outside of their official station.38 RULES AND REGULATIONS FOR THE IMPLEMENTATION OF THE REVISED COMPENSATION AND POSITION CLASSIFICATION SYSTEM PRESCRIBED UNDER R.A. No. 6758 FOR GOVERNMENT-OWNED AND/OR CONTROLLED CORPORATIONS (GOCCS) AND FINANCIAL INSTITUTIONS (GFIS); effective on July 1, 1989.
5.5.1 Rice Subsidy; 5.5.2 Sugar Subsidy; 5.5.3 Death Benefits other than those granted by the GSIS; 5.5.4 Medical/dental/optical allowances/benefits; 5.5.5 Children's Allowance; 5.5.6 Special Duty Pay/Allowance; 5.5.7 Meal Subsidy; 5.5.8 Longevity Pay; and 5.5.9 Teller's Allowance. (Emphases supplied.)
39 DBM CCC No. 10, sub-paragraph 5.5, supra note 37.
40Ambros v. Commission on Audit, 501 Phil. 255, 275 (2005).
41 677 Phil. 608 (2011).
42Rollo, p. 45.
43Agra v. Commission on Audit, supra ar 634.
44 480 Phil. 861 (2004).
45Id. at 885-886.
46 G.R. No. 244128, September 8, 2020.
47 SEC. 38. Liability of Superior Officers. - (1) A public officer shall not be civilly liable for acts done in the performance of his official duties, unless there is a clear showing of bad faith, malice or gross negligence.x x x x
(3) A head of a department or a superior officer shall not be civilly liable for the wrongful acts, omissions of duty, negligence, or misfeasance of his subordinates, unless he has actually authorized by written order the specific act or misconduct complained of.
48 SEC. 39. Liability of Subordinate Officers. - No subordinate officer or employee shall be civilly liable for acts done by him in good faith in the performance of his duties. However, he shall be liable for willful or negligent acts done by him which are contrary to law, morals, public policy and good customs even if he acted under orders or instructions of his superiors.
49 SEC. 43. Liability for Illegal Expenditures. - Every expenditure or obligation authorized or incurred in violation of the provisions of this Code or of the general and special provisions contained in the annual General or other Appropriations Act shall be void. Every payment made in violation of said provisions shall be illegal and every official or employee authorizing or making such payment, or taking part therein, and every person receiving such payment shall be jointly and severally liable to the Government for the full amount so paid or received.
Any official or employee of the Government knowingly incurring any obligation, or authorizing any expenditure in violation of the provisions herein, or taking part therein, shall be dismissed from the service, after due notice and hearing by the duly authorized appointing official. If the appointing official is other than the President and should he fail to remove such official or employee, the President may exercise the power of removal.
50Blaquera v. Hon. Alcala, 356 Phil. 678, 765 (1998).
51 CIVIL CODE, ART. 2154. If something is received when there is no right to demand it, and it was unduly delivered through mistake, the obligation to return it arises.
52 CIVIL CODE, ART. 22. Every person who through an act of performance by another, or any other means, acquires or comes into possession of something at the expense of the latter without just or legal ground, shall return the same to him.
53Abellanosa v. Commission on Audit (Resolution), G.R. No. 185806, November 17, 2020.
54 See Department of Public Works and Highways, Region IV-A v. Commission on Audit, G.R. No. 237987, March 19, 2019.
55Madera v. Commission on Audit, supra note 46; Department of Public Works and Highways v. Commission on Audit, id.
56Rollo, p. 36.
57 DBM CCC No. 10 dated October 2, 1989, sub-paragraph 5.6 stated "[p]ayment of other allowances/fringe benefit[s] and all other forms of compensation granted on top of basic salary, whether in cash or in kind x x x, shall be discontinued effective November 1, 1989. Payment made for such allowances/fringe benefits after said date shall be considered illegal disbursement of public funds."
58Metropolitan Waterworks and Sewerage System v. Commission on Audit, 821 Phil. 117, 139-140 (2017); Tetangco, Jr. v. Commission on Audit, 810 Phil. 459, 467 (2017).
59Supra note 15.
60Id.
61Philippine National Bank v. Palma, 503 Phil. 917 (2005); Philippine International Trading Corporation v. Commission on Audit, supra note 34; Ambros v. Commission on Audit, supra note 32; De Jesus v. Commission on Audit, 497 Phil. 675 (2005), citing Philippine Ports Authority v. Commission on Audit, 289 Phil. 266 (1992), and Philippine International Trading Corp. v. Commission on Audit, 368 Phil. 478 (1999); Agra v. Commission on Audit, supra note 41.cralawredlibrary