Tejada v. Domingo
NEW DOCTRINEFacts
The Antecedents: Petitioners Roseo U. Tejada and Radito C. Ching, senior clerks of the Commission on Audit (COA) assigned to the Philippine National Bank (PNB) and Central Bank (CB) respectively, received additional emoluments from these government-owned or controlled corporations (GOCCs) prior to the effectivity of Republic Act No. 6758 (Compensation and Position Classification Act of 1989). These additional benefits were voluntarily given by the PNB and CB. Procedural History: Respondent Chairman of the COA issued a memorandum dated August 24, 1989, interpreting Section 18 of R.A. No. 6758 to mean that effective July 1, 1989, COA officials and employees would only receive compensation paid directly by the COA out of its own appropriations. Consequently, additional emoluments from other government entities were to be deleted from their payrolls. Petitioners' request for reconsideration was denied, resulting in a reduction of their salaries. They filed a special civil action for certiorari with prohibition and mandamus. The Petition: Petitioners sought to annul the COA Chairman's interpretation and implementation of Section 18 of R.A. No. 6758, arguing that it erroneously diminished their gross compensation and that the additional emoluments they received were paid directly by the COA out of its appropriations and contributions.
Issue(s)
Whether Section 18 of R.A. No. 6758 requires or authorizes the diminution of the gross compensation of COA personnel prior to its effectivity, notwithstanding Sections 12 and 17 of the same law. Whether all salaries, allowances, fringe benefits, and other emoluments received by petitioners prior to R.A. No. 6758 were "paid directly by the COA out of its appropriations and contributions" within the meaning of the exception under Section 18.
Ruling
The petition is dismissed for lack of merit. The interpretation and implementation of Section 18 of R.A. No. 6758 by the respondent Chairman of the COA are sustained.
Ratio Decidendi
On the issue of whether Section 18 of R.A. No. 6758 authorizes the diminution of gross compensation: The Court held that Section 18 of R.A. No. 6758 is a valid measure designed to preserve the independence and integrity of the COA. It explicitly prohibits COA officials and employees from receiving emoluments from other government entities, except those paid directly by the COA. This prohibition is consistent with the policy established by Presidential Decree No. 1445 (Government Auditing Code of the Philippines) and Executive Order No. 19, which aimed to insulate COA personnel from undue influence. The Court found that the petitioners' assumption that their gross compensation included extra emoluments from GOCCs, to which they had vested rights under Sections 12 and 17, was erroneous. The law's intent was to remove the temptation and enticement that extra emoluments provide, thereby ensuring impartial auditing. On the issue of whether the emoluments were paid directly by the COA out of its appropriations and contributions: The Court ruled that the additional emoluments received by the petitioners from the PNB and CB were not paid directly by the COA out of its appropriations and contributions. These benefits were voluntarily given by the GOCCs. The law clearly limits the contributions from GOCCs to the cost of audit services, which includes personnel services, maintenance, and overhead, but not extra emoluments for COA personnel. Furthermore, Memorandum Order No. 177 and Corporate Budget Circular No. 15 clarified that such benefits were not covered for detailed personnel from other government agencies, including the COA. The Court emphasized that R.A. No. 6758 strengthened the policy of insulating COA personnel, and it would be absurd to mandate the integration of prohibited benefits into standardized salary rates. The Secretary of the DBM certified that these extra emoluments were not provided under the regular appropriations of the COA.
Main Doctrine
Section 18 of Republic Act No. 6758, which prohibits Commission on Audit (COA) officials and employees from receiving salaries, honoraria, bonuses, allowances, or other emoluments from any government entity, local government unit, and government-owned or controlled corporations (GOCCs), except those paid directly by the COA out of its appropriations and contributions, is a valid measure to preserve the independence and integrity of the COA. This prohibition is consistent with prior laws and executive issuances aimed at insulating COA personnel from undue influence.