Tetangco v. Commission on Audit
REITERATIONFacts
The Antecedents: The Philippine International Convention Center Inc. (PICCI) was established by the Bangko Sentral ng Pilipinas (BSP) under Presidential Decree 520 to manage and operate the Philippine International Convention Center. The BSP Governor, Senior Deputy Governor, and five other members designated by the Monetary Board constitute the PICCI's Board of Directors. Petitioners Amando M. Tetangco, Jr., Armando L. Suratos, and Juan D. De Zuñiga, Jr., all BSP officers, served on the PICCI Board between January 2010 and February 2011. During this period, the PICCI Board, with BSP Monetary Board approval, passed resolutions increasing per diems and granting representation and transportation allowances (RATA) and bonuses to its directors. These payments totaled P618,500.00. Procedural History: Following a post-audit, the Commission on Audit (COA) issued Notice of Disallowance (ND) No. 12-001-GF-(10&11) disallowing the P618,500.00 paid to petitioners, citing violations of the constitutional prohibition against double compensation and Executive Order No. 24. The COA-Corporate Government Sector (COA-CGS) affirmed this disallowance. The COA Proper, while partially granting a review, affirmed the disallowance of RATA and bonuses, allowing only P1,000.00 per diem per meeting. A subsequent motion for reconsideration was denied. Petitioners then filed a Petition for Certiorari with the Supreme Court. The Petition: Petitioners seek to nullify the COA's disallowance, arguing that the per diems and RATA increases were authorized by PICCI's amended by-laws and Monetary Board Resolutions, and that the case is squarely covered by the Supreme Court's ruling in Singson, et al. v. COA, which found no double compensation. They contend that Memorandum Order No. 20 and Executive Order No. 24 do not apply retroactively or to PICCI, respectively. They also assert that the benefits were received in good faith. The Solicitor General, representing the COA, argues that PICCI is a government-owned and controlled corporation subject to COA audit, that the disallowed benefits were unauthorized, and that Singson is not applicable.
Issue(s)
Whether the COA committed grave abuse of discretion in affirming the disallowance of the excess per diems and the representation and transportation allowance (RATA) and other bonuses granted to petitioners as members of the Board of Directors of PICCI. Whether the grant of RATA and other bonuses to the Board of Directors of PICCI was legal and valid.
Ruling
The Petition for Certiorari is denied. The Decision of the Commission on Audit dated February 16, 2017, is affirmed.
Ratio Decidendi
On the issue of disallowance of excess per diems and RATA/bonuses: The Court affirmed the COA's disallowance. It was established that the grant of representation and transportation allowance (RATA) and other bonuses to the Board of Directors of the Philippine International Convention Center Inc. (PICCI) was without legal basis. Such allowances and bonuses for the board members of government-owned or controlled corporations (GOCCs) require prior approval from the President of the Philippines, pursuant to Executive Order No. 203, s. 1990, and subsequent circulars. The records showed no such approval was obtained for the RATA and bonuses in question. Therefore, the COA correctly disallowed these payments. The disallowance of the excess per diems over the P1,000.00 limit was also upheld as it was not supported by any proper board resolution or legal authority. On the legality of RATA and bonuses: The Court found that the grant of RATA and other bonuses to the Board of Directors of PICCI was illegal. Executive Order No. 203, s. 1990, mandates that the compensation of GOCC officials and employees, including per diems, bonuses, and other allowances, shall be subject to the approval of the President. Petitioners failed to present any evidence that such approval was secured for the RATA and bonuses they received. Consequently, these payments were deemed unauthorized and subject to disallowance by the COA. The Court reiterated that public funds must be disbursed in accordance with law, and any disbursement made without legal basis can and should be disallowed.
Main Doctrine
The grant of representation and transportation allowance (RATA) and other bonuses to members of the Board of Directors of a government-owned or controlled corporation (GOCC) without prior approval from the President, as required by law, is illegal and subject to disallowance by the Commission on Audit (COA).