276775 Teresita P. De Guzman, et al. Vs. Commission on Audit — Official PDF

i) Decision GR. No. 276775 This is a Petition for Certiorari'questioning the Commission on Audit’s (COA) Decision Nos. 2020-487° and 2023-457, dated January 31, 2020 and December 7, 2023, respectively. The assailed rulings affirmed the disallowance of fringe benefits paid to the general manager (GM) and the two assistant general managers (AGM) of the Baguio Water District (BWD) for the year 2009. The BWD is a government-owned and controlled corporation (GOCC) established under Presidential Decree No. 198, or the Provincial Water Utilities Act of 1973.4 On December 6, 2008, the BWD Board of Directors (Board) issued Resolution Nos. 64-2008 and 65-2008 authorizing the payment of monthly fringe benefits in the amount of PHP 40,000.00 to its GM, and PHP 20,000.00 to its two AGM, starting in January 2009.5 The payments were justified as recognition of the GM and the AGMs’ efforts “in sustaining the operations of the District,... increasing production capability through... completing the AusAid project activation jointly with the LWUA [Local Water Utilities Administration],.... sourcing out new water sources and... hurdling all tribulations related in [the BWD’s] operations.”® Resolution No. 64-2008 further discontinued the grant of extraordinary and miscellaneous expenses (EME).’ The amounts were charged to the BWD’s extraordinary expenses account® and subjected to post-audit.’ On May’ 15,°2012, the BWD’s resident auditors issued’ Notice of Disallowance (ND) Nos. 12-013-101-(09) to 12-022-101-(09),'° covering a total amount of PHP 683,882.37 in disbursements to the GM and PHP 705,882.24 to the two AGMs.'! The disbursements to the GM were disallowed for being in excess of the amount allowed for extraordinary expenses under the then- applicable 2009 General Appropriations Act (GAA)? and Corporate Budget Circular No. 18 dated November 14, 2000,'? while the disbursements to the AGMs were disallowed because AGMs are not among the personnel entitled to ! Rollo, pp. 3~14. Id, at 31-42. Signed by Chairperson Michael G. Aguinaldo and Commissioner Roland C. Pondoc. Commissioner Jose A. Fabia participated but did not sign the Decision. Id. at 90-96, Signed by Chairperson Michael G. Aguinaido and Commissioners Roland C. Pondoc and Mario G. Lipana. 4 De Guzman v. Commission on Audit, 887 Phil. 1067, 1074--1075 (2020) [Per J. Lazaro-Javier, En Banc]; Tanjay Water District v. Gabaton, 254 Phil, 253 (1989) [Per J. Grifio-Aquino, First Division]; Baguio Water District v. Hon. Trajano, 212 Phil. 674, 675 (1984) [Per J. Abad Santos, Second Division]. 5 Rollo, pp. 113-114. Resolution Nos. 64-2008 and 65-2008. 6 Id. 7 Id. at 113: : 8 Id. at 98-111. Notices of Disallowance. 9 Id. at 32. COA Decision No. 2020-487. Id. at 98-111. "Id. at 33, 43-44, 53-54, COA Decision No. 2020-487 and COA-CAR Decision. 2 Republic Act No. 9524. 3 Rollo, pp. 98-102. ND Nos. 12-013-101-(09) to 12-016-101-(09).