Case Digest (G.R. No. 177131)
Facts:
Boy Scouts of the Philippines v. Commission on Audit, G.R. No. 177131, June 07, 2011, Supreme Court En Banc, Leonardo‑De Castro, J., writing for the Court.The controversy began when the Commission on Audit (COA) promulgated Resolution No. 99‑011 on August 19, 1999, announcing a policy to conduct annual financial audits of the Boy Scouts of the Philippines (BSP) and to classify the BSP for audit supervision among certain government corporations. The COA based its Resolution on the BSP's creation by special law (Commonwealth Act No. 111), amendments under Presidential Decree No. 460 and Republic Act No. 7278, prior judicial characterization of the BSP in Boy Scouts of the Philippines v. NLRC, and COA’s constitutional mandate under Article IX‑D, Section 2(1) of the 1987 Constitution.
The BSP (through National President Jejomar C. Binay and others) sought reconsideration in late 1999, arguing that RA 7278 altered the BSP’s charter by removing substantial government participation in its governing board and therefore removed COA jurisdiction; the BSP also stressed that its funds are privately raised and not included in the national budget. COA’s General Counsel issued a memorandum (June 20, 2000) concluding that RA 7278 did not supersede the Court’s prior characterization because (a) government participation was only one of three grounds in the NLRC decision, (b) the BSP’s purposes retain a public aspect, and (c) the charter still designates it a public corporation. COA proceeded to schedule a preliminary survey and audit activities in November 2000.
The BSP filed a Petition for Review with Prayer for Preliminary Injunction and/or Temporary Restraining Order before COA, which the COA denied in its challenged June 18, 2002 Decision (COA Decision No. 2002‑107), and later denied reconsideration in a February 21, 2007 Resolution. Thereafter the BSP filed a Rule 65 petition for prohibition (with prayer for preliminary injunction/TRO) before the Supreme Court seeking to prohibit COA from implementing those COA rulings and to render them null and void.
In the Supreme Court proceedings the Court (by Resolution dated July 20, 2010) required the parties to comment on whether Commonwealth Act No. 111, as amended by RA 7278, is constitutional; both parties filed comments. The Court resolved the petition by denying the Rule 65 petition and dismissing BSP's prayer, holding that the BSP is a public corpor...(Subscriber-Only)
Issues:
- Does the Boy Scouts of the Philippines fall under the Commission on Audit’s audit jurisdicti...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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